NU Online News Service, Dec. 5, 2003, 1:33 p.m. EST – Allmerica Financial Corp., Worcester, Mass., says it will be using exchange-traded futures contracts to hedge the guaranteed minimum death benefits it has sold along with variable annuities.[@@]
The hedging program will protect the company against the possibility that falling stock prices could increase VA death benefit claims, but the program will let Allmerica share in the gains if stock prices rise, the company says.