5 Things to Know About How Variable Annuities Handled the Q4 Storm

March 19, 2019 by Allison Bell

Life insurance company executives sounded calm when they talked about how their annuity operations did in the fourth quarter.

No major life reinsurers or derivatives counterparties raced into liquidation.

Analysts at Moody’s Investors Service say they looked hard at the issuers’ fourth-quarter financial statements and believe that the issuers’ variable annuity units really did hold up well.

The stock market volatility during the quarter was the worst life insurers have seen since the 2008-2009 financial crisis, and the volatility did cut variable annuity units’ adjusted earnings by an average of 27%, Laura Bazer and other Moody’s analysts write in a new variable annuity performance report.

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Originally Posted at ThinkAdvisor on March 19, 2019 by Allison Bell.