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Old 10-07-2008, 01:06 AM   #5
Thinks s/he gets paid by the post
clifp's Avatar
 
Join Date: Oct 2006
Posts: 3,009
IIRC, in part of the never ending Annuity wars discussion, there was a reference to an academic paper, where professor showed that the insurance companies were significantly underpricing EIA with a guarantee minimum return typically in the 3%+ range

Given the insurance companies latest disasters with investment, the drop of safe investment rates to just barely over the 3% range, and the market tanking etc, I wonder how the insurance companies will be able to pay the claims?
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