The stereotype is that stockbrokers and mutual fund managers weep when inventory costs fall, and annuity issuers and sellers get busy shopping for champagne and making gross sales.
Shares and mutual funds go away buyers with assurances that, prior to now, the inventory market has all the time ultimately bounced again earlier than. Proper?
An annuity issuer has the privilege of with the ability to assure half or all the buyer’s account worth.
However, in fact, providing ensures might be nerve-racking.
Lately, many life insurers have shifted towards the sale of merchandise that restrict their direct publicity to investment-related ensures. In some instances, annuity issuers use index choices and different derivatives to go assure threat on to Wall Road buyers.
Nonetheless, life insurers nonetheless shoulder some assure threat.
Right here’s a have a look at a few of what insurance coverage firm executives have been saying about market volatility over the previous two weeks, throughout convention calls the insurers have been holding to go over first-quarter outcomes — which, total, have been superb.
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