IMF Economists: Bermuda Rules Make Annuity Issuers Look Bette

January 8, 2024 by Allison Bell

Economists at the International Monetary Fund make the case that Bermuda’s capital counting rules really do encourage annuity issuers in the United States and Europe to buy reinsurance from companies based in Bermuda.

Bermuda lets reinsurers build assumptions about high future earnings on hard-to-sell, hard-to-price assets into benefits obligation valuations, then build the expected extra gains into current capital totals, according to a research note by Fabio Cortes, Mohamed Diaby and Peter Windsor.

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Originally Posted at Think Advisor on January 4, 2024 by Allison Bell.