Description: As sales registered index-linked annuity (RILA) sales continue to exhibit strong growth, insurers may be faced with challenges and opportunities to best manage the hedging requirements of the product. In this session we will explore the potential benefits of dynamically vs. static hedging and how insurers could recognize synergies in hedging RILA alongside traditional variable annuities. We will also dive into how hedging overlaps with strategy and modeling as companies need to simulate future index crediting strategies and monitor the risks of emerging guaranteed lifetime withdrawal benefit (GLWB) riders. Coming out of this session, attendees will gain key insights on hedging strategies and considerations for RILA products, with considerations around interaction with existing VA business, as well as the potential challenges of RILA hedging in an evolving market.

Description: With higher interest rates and aging populations, the Bermuda offshore reinsurance market has been heating up, particularly to firms backed by asset management firms and private equity. Increased competition along with changing regulatory requirements, and evolving expectations around model governance have actuaries facing heavier production and results explanation workloads. This creates additional challenges on top of an already complex Bermuda reporting regime, particularly with the Scenarios-Based Approach (SBA) and Bermuda Solvency Capital Requirement (BSCR).

Description: The Required Minimum Distribution [RMD] working group of the Taxation Section has completed research in determing the actuarial present value of additional benefits for computing RMD under deferred annuity contracts. This Appendix E spreadsheet is for the Guaranteed Minimum Withdrawal Benefit [GMWB] calculation. See the SOA website research section for the complete report and excel spreadsheet for the other appendices.

Description: This paper is a literature review of available papers, publications, articles, and presentations on the topic of longevity risk.

Description: The speaker will share his insights into the hedging challenges faced by FIA and VA business in the current market environment.

Description: While our ability to access and analyze large quantities of data is better than ever, many long-term products suffer from sparse data in critical risk areas, such as deep in-the-money lapse experience and long-term utilization rates for income guarantees. The presenters will explore industry-level annuity experience data for these types of situations, and discuss quantitative approaches to addressing them in pricing and other applications.

Description: This paper builds a model that quantifies the natural hedging benefits of a portfolio of both variable annuities and equity indexed annuities. The model is based on risk-neutral option pricing theory and risk-adjusted performance measure, RAPM. Through a double-tier simulation framework, an optimum product mixture of those two contracts is achieved that provides the best RAPM and therefore deploys capital the most efficiently. From 2006 Enterprise Risk Management Symposium, M-AS06-1.

Description: Value of new business (VNB) is being used by many companies for various purposes including: internal and external financial reporting, incentive compensation, pricing, capital management, and comparing products, distribution channels or regions on a consistent basis. Presenters will discuss how and why value of new business is used within their companies including: the various methodologies considered, some of the benefits and challenges related to implementing VNB, integrating VNB within their business as usual processes, and managing to VNB.

Description: Even though the 2018 Tax Cut and Job Act significantly simplified the tax valuation methodology, taxation can impact the valuation outcomes and financial decisions. This presentation will start with an overview of the key taxation topics relating to valuation work, and then dive into more complex topics, such as the deferred tax asset/liability handling and reinsurance implications.