Best Research Ideas

The Mortality Mystery

Mortality rates are hardly improving. Life expectancy forecasts are falling fast. At first this was considered an anomaly, then a flu related one-off, now a trend. However, from this tragedy comes an uncomfortable truth: reducing life expectancy forecasts releases hidden value in annuity back books. So much so that Jefferies believes the value release could be worth 3.6% of Prudential, 8.7% of L&G and >11.0% of Aviva. FULL REPORT

Philip Kett, European Insurance