“Trick or Treat” – a Bag Full of De-Risking, Fire Sales, and a Market Bounce

If we were to liken the variable annuity industry to a ship on the high seas, we’d have to say it has been tossed around by contrary winds of late. Choppy equity markets and low interest rates have prompted leading insurers to scale back on their benefit guarantees, causing temporary spikes in their sales. And yet in October, stocks rebounded – usually a good sign for business – but we figure most companies will proceed warily over the near term...