Variable annuities: waiting for the next generation

A few years ago European insurers were issuing increasing numbers of guaranteed products that resembled structured notes. What scope is there for this type of business today? By John Ferry

Before the financial crisis, a key trend for the European insurance industry was the emergence of insurance company-issued products which looked like they had been put together by a bank’s equity derivatives desk. The products, which often fell under the insurance industry’s variable annuity banner, offered guaranteed future payments along with some form of exposure to risky assets, typically an equity fund. They were attractive for insurers because they gave the industry a way to move beyond