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Anyone have a list of the best companies and the worst for renewal rates and market value adjustments (MVA)? Thanks.
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Why would anyone want to buy (or sell) MVA annuities?
As a pricing manager, I calculated that a carrier can only afford to offer a fixed credited rate 0.01% (1 bp) higher if the fixed annuity has a MVA. In exchange, the MVA could cost clients all excess interest if they cash out at a bad time. Note: MVA annuities that aren't in separate accounts (i.e., variable) seem to violate cash value requirements.
As a pricing manager, I calculated that a carrier can only afford to offer a fixed credited rate 0.01% (1 bp) higher if the fixed annuity has a MVA. In exchange, the MVA could cost clients all excess interest if they cash out at a bad time. Note: MVA annuities that aren't in separate accounts (i.e., variable) seem to violate cash value requirements.
- Thread starter
- #3
- 429
Maybe I should have rephrased my quyestion about MVA's to which companies to avoid that have MVAs on EIAs and which companies have EIAs without MVAs.
