Originally Posted by Tosti11
Question of my own. In discussing the rilsks associated with the liabilities, do we need to discuss Non-Traditional Life or Variable Annuities at all? My sense is no because it appears they are fully supported by separate accounts. Same question for Institutional GICs. But with these, i think only some of them are supported by separate accounts, so we still need to describe the risks for the contracts worth less than $150M.
Any thoughts would be appreciated.
I haven't submitted yet or seen the model solution, but my thought would be that since the GMDB is supported by general account reserves (look at the old Section G on a Blue Book Exhibit 5) it may be worth a mention. For the GIC, I don't think it is a S/A product.
Just now I noticed you posted this in January, so you will probably never read this response. Sorry.
Question of my own in case anyone is monitoring this thread: the end of the LifeCo report is a new set of derivatives guidelines. It discusses hedging strategies in the present tense. Yet, the balance sheet shows no derivatives. Am I missing something?