| Annuity Rate/Adjustments Update As you are aware, the equity markets and treasury yields have been very volatile over the past few weeks and we have seen a significant reduction in our bond yields. In fact, these are the lowest 10-year Treasury bond rates ever recorded. We did not want to react too quickly in case the markets calmed down and returned to normal levels. However, as a responsible partner, we cannot wait any longer and must take action now. Click here to view and download the update Rate Sheet or log into the agent portal to access. We will be decreasing our Secure Savings & Secure Savings Elite rates by 40 bps for all products. Rates are effective Friday, 3/13/20. |
| We will be decreasing the Teton and Teton Bonus rates by similar amounts. The volatility in the bond and equity markets has passed through to the option pricing market. In fact, the VIX is currently over 50%. This has led to changes in option pricing and therefore the adjustments we can provide: Even with the volatility change, AP2P caps only decreased 50-75 bps. Volatility is a friend to monthly caps. Monthly caps stayed flat or decreased slightly. Monthly average option pricing was the most impacted by the volatility changes. Atlas is less sensitive to volatility changes. Atlas participation rates decreased slightly, and spreads increased slightly. We still have a few Boosts! Since option pricing is changing daily, we are watching the situation very closely and are getting quotes regularly. As the market changes (and hopefully smooths), we will let you know if we can make any changes to these adjustments. On Monday’s webinar, we’ll discuss how Atlas has been able to weather this market, and its year-to-date return has actually INCREASED during these unprecedented times. |