Hedging into the future

Variable Annuities

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The raging success of variable annuities in the US has sparked a stampede by insurers to replicate this in Europe, led by Axa whose Twin Star product has already attracted 150,000 German policyholders. Behind the insurers comes another stampede by vendors seeking to sell hedging solutions and technology platforms for the new products. But with the financial success of variable annuities heavily dependent on customer behaviour, it may be dangerous to make assumptions based on the American exp