American Academy of Actuaries’ Post

If you missed this session at the #AnnualMeeting, take advantage of this week's #webinar on #PensionRiskTransfers. #ActuarialInsights #PublicPolicy #LifeInsurance #PensionIssues #Annuities

Do you know if cash flow matching is a viable and less expensive alternative to pension risk transfer? https://bit.ly/4cRnDEe Well, it depends. We take a closer look at these two liability management strategies in our recent paper. #PensionRisk #pension #DefinedBenefit #markets

Do you know if cash flow matching is a viable and less expensive alternative to pension risk transfer? https://bit.ly/3WeoqZQ Well, it depends. We take a closer look at these two liability management strategies in our recent paper. #PensionRisk #pension #DefinedBenefit #markets

Bulk annuity market outlook 2024: trends and insights Our latest analysis of the bulk annuity market reveals: * Approximately £22bn of business written or in exclusivity * Projected full-year volumes to exceed £40bn * Increased activity in the small scheme market * Evolution of large transaction approaches Key factors influencing the market: * Expanded insurer capacity * Shifting economic conditions * Development of streamlined solutions For pension scheme trustees and managers, preparation is crucial in this dynamic environment. Our blog offers a comprehensive overview of current trends and strategic considerations. https://lnkd.in/eRk2N2dq #BulkAnnuity #PensionRiskTransfer #MarketAnalysis #PensionManagement

As bulk purchase annuities become more affordable, more companies are insuring their defined benefit pension schemes. In the U.K., over the next three years annual premium to remain close to £50 billion. Some insurers, in turn, are managing their risk by making heavy use of funded reinsurance. Regulatory scrutiny has, deservedly, followed. Read more: https://okt.to/X3CSc4

Best Practices to Manage Defined Benefit Plan Costs and Risks Join PLANSPONSOR and Principal Financial Group for a webinar on June 26 as pension specialists discuss strategies to reduce PBGC premiums, benefits of consolidating service providers, advantages of hedging risk before and after a PRT, and more. https://bit.ly/3x1azfV #definedbenefitplans #DBplans #PBGCpremiums #pensionrisktransfer #PRT

Embarking on a PRT journey is not just about shifting financial burdens—it’s about forging a pathway to certainty in an unpredictable financial landscape. In this article, we delve into the intricacies of PRT, exploring its different types of risks and the strategies employed to manage them effectively. Read more: https://lnkd.in/eHvFn-ks #PensionRiskTransfer #PRT #Insurance #riskmanagement

Find out how the #Pension is paid out in #NPS scheme through the Annuity Service Providers: https://lnkd.in/guy6TkB4   #finance #MONEY #InvestorAwareness #FinancialFreedom #NationalPensionScheme #InvestorEducation #investing #investment #ChooseNPS

A leading European savings and retirement services group allocates its capital and resources to build a stand-alone independent and integrated insurance and reinsurance business. The client needed support with annual and initial reviews of private credit transactions to remain compliant with regulations. Read the case study: https://ow.ly/G4Co50QGONp #ReimagineYourRisk

Should you take your pension as a lump sum or an annuity? There's a lot to this, but it all starts with one number - the internal rate of return (IRR) of the annuity. This is the rate of return that your lump sum would have to earn for it to be a "better" option than the annuity. For example, if the IRR is 10%, you might choose to take the annuity. If the IRR is only 4%, however, then you are likely better off taking the lump sum since it will almost certainly earn more than 4% for the rest of your life. There are many factors that go into this decision besides the IRR, but this is almost always my starting point when advising clients on this question.