Volatility knocks

Variable Annuities

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The credit crisis has morphed in the past three months from a calamity largely affecting financial institutions with subprime mortgage exposures to a widespread phenomenon involving equities, commodities and foreign exchange rates. In this latest phase, the ripple effects have spread far beyond banks and hedge funds, and are starting to hit the insurance sector.

Having navigated the early part of the crisis relatively unscathed, insurance companies are starting to feel the pressure caused by mar

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