Variable Annuities - Flawed product design costs Old Mutual £150m


South African insurer, Old Mutual, has had to inject £150 million into its US life subsidiary as flawed product design in its Asian variable annuity (VA) business resulted in a £107 million loss in the first half of 2008 - losses which could increase further if equity markets decrease even more.

Old Mutual's US Life subsidiary has been selling Asian consumers VAs via Hong Kong-based HSBC Insurance since the start of May in 2007. This product contained minimum return guarantees based on an

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: