annuities - funds and some of the companies that eventually hold them
How do I learn Annuities ..?
- Thread starter MedicareMutt
- Start date
Cite your source, please.
- 7,085
More unknown risks these days in fixed annuities
If Colorado Bankers wasn't bad enough of fraud & lack of oversight, saw these 2 articles that make me concerned that over half the industry is using private equity run reinsurers in Bermuda & Cayman Islands as it allows more aggressive accounting & investment practices. Think Sentinel &...
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- 7,085
you are being a jerk of the first order. You could have searched this yourself based on previous posts.
Thank you for finding the thread and posting it. I am out of town and didn't have time to go looking for it. Of course the person who asked could have looked themselves too.More unknown risks these days in fixed annuities
If Colorado Bankers wasn't bad enough of fraud & lack of oversight, saw these 2 articles that make me concerned that over half the industry is using private equity run reinsurers in Bermuda & Cayman Islands as it allows more aggressive accounting & investment practices. Think Sentinel &...
Just as with mortgages where the company you initially get your mortgage from re-sells your mortgage to another company or investors, a variation of this can happen in annuities (and in other financial arenas). That used to happen a lot in the student loan market with student loans, whether or not they were Stafford loans (so the servicer of the loan, once it was in repayment, would change, often multiple times - happens less now due to other changes in that sector).
- 5,002
47% of reinsurance was ceded to off shore reinsurers, up from 26%. [EXTERNAL LINK] - Strong annuity growth continues as reinsurers shift business offshore to Bermuda: AM Best - Reinsurance News
- 5,002
I don't consider who holds the loan on my house the same as who invests my money in an annuity. An annuity company can impact my rate of return and whether I get all my money back based on their practices. A lender selling or transferring my loan has no impact on the value of my house.
Unless the loan is callable or an adjustable rate, the servicer of the loan doesn't impact me a great deal, especially on a fixed rate mortgage. Plus, I can always refinance to a new bank. If an annuity company goes into liquidation, I have zero control over moving the money.
Annuity carrier holds my asset "money"
Lender holds my debt because I have used their money.
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- 10,808
Dozens of sources could be cited about this. It is a huge regulatory issue that has been growing steadily as rates increased, making it easier for new players to enter the industry.
We are not talking about the big 4 or 5 reinsurers everyone has heard of and uses. These are Caribbean based reinsurers who operate with very little regulatory oversight. And have already been caught wrongly reporting the credit ratings of assets held.
- 10,808
Exactly.
A person is making a promise to pay a Company money, with a Mortgage.
A person is buying a promise to be paid money by a Company, with an Annuity.
If the Annuity carrier is misrepresenting the assets backing that promise, that can be devastating to a persons life and finances.
No different than using a shady reinsurer who misrepresents their assets... legal onus is on the Cover Holder to fully vet the reinsurer used.
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