Garden-variety futures and options seem to be doing a good job of protecting variable annuity assets, according to consultants at a large actuarial firm.
Milliman Inc., Seattle, has released an internal analysis concluding that hedging programs based on instruments such as options on the S&P 500 stock index were about 93% effective in September and October.
The hedging programs saved about $40 billion in insurance company assets, Milliman consultants estimate.
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