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Jones, Riley, and Adriana Ocejo. "Assessing Guaranteed Minimum Income Benefits and Rationality of Exercising Reset Options in Variable Annuities." International Journal of Statistics and Probability 8, no. 5 (August 6, 2019): 13. http://dx.doi.org/10.5539/ijsp.v8n5p13.
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A variable annuity is an equity-linked financial product typically offered by insurance companies. The policyholder makes an upfront payment to the insurance company and, in return, the insurer is required to make a series of payments starting at an agreed upon date. For a higher premium, many insurance companies offer additional guarantees or options which protect policyholders from various market risks. This research is centered around two of these options: the guaranteed minimum income benefit (GMIB) and the reset option. The sensitivity of various parameters on the value of the GMIB is explored, particularly the guaranteed payment rate set by the insurer. Additionally, a critical value for future interest rates is calculated to determine the rationality of exercising the reset option. This will be able to provide insight to both the policyholder and policy writer on how their future projections on the performance of the stock market and interest rates should guide their respective actions of exercising and pricing variable annuity options. This can help provide details into the value of adding options to a variable annuity for companies that are looking to make variable annuity policies more attractive in a competitive market.
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Крчмар, Миливој. "Модели амортизације зајма исподгодишњим варијабилним ануитетима // Models of loan amortization under annual variable annuities." ACTA ECONOMICA 11, no. 19 (July 11, 2013): 67. http://dx.doi.org/10.7251/ace1319067k.
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РезимеУ овом раду презентовани су модели амортзације зајма исподгодишњим варијабилним ануитетима уз фиксну каматну стопу. Овде се разматрају два модела:а)ануитети током године су једнаки, а сваке сљедеће већи (мањи) у односу на претходну годину за q пута и б)ануитети се мијењају циклично, гдје се полази од претпоставке да су исподгодишњи ануитети у току првих k година по а1, у току наредних k година по a1q,..., у току посљедњих k година по a1qs-1 новчаних јединица, гдје је s број циклуса (серија) у току n година. За сваки модел амортизације зајма приказана су три начина обрачуна и плаћања камате: a)камата се обрачунава и плаћа годишње на бази релативне каматне стопе, b)камата се обрачунава и плаћа у исподгдишњим интервалима на бази конформне каматне стопе и c)камата се обрачунава и плаћа у исподгодишњим интервалима на бази релативне каматне стопе.Summary: This paper presents models of annuity which either increase or decrease a fixed factor q and which are paid m times in year. The payments (annuity) increase (decrease) in such a way thata)each payment in the year is equal but each payment in the next year is q times than the payment in previous years andb)each payment in the k years is equal but each payment in the next k years is q times than the payment in previous k years.
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Ryan, Raymond. "The anti-annuity payment campaign, 1934–6." Irish Historical Studies 34, no. 135 (May 2005): 306–20. http://dx.doi.org/10.1017/s0021121400004491.
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The retention by the Fianna Fáil government of the land annuities in 1932 and the consequent trade dispute with Great Britain, the ‘economic war’, is a subject extensively covered in the existing historiography, both in terms of the diplomatic and economic facets of the dispute. Opposition by the opponents of Fianna Fáil to the collection of land annuities has been well documented in the context of the political conflict between supporters and opponents of the treaty. Another trend in the historiography has emphasised, as the central characteristic of the anti-annuity payment campaign, the opposition by farmers to the payment of annuities on economic and social rather than on political grounds. Paul Bew and others have argued that large farmers supported the Blueshirts during the ‘economic war’ for material reasons; Mike Cronin has argued that the crisis of the ‘economic war’ encouraged opposition to de Valera’s policies among farmers, rather than pro-Treaty political considerations; and Andrew Orridge has also argued that the anti-annuity payment campaign included both a political element, in the form of Blueshirt hostility to Fianna Fáil, and a non-political element, on the part of farmers protesting at how their dependence on agricultural exports to Britain was threatened by Fianna Fáil policies.
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CHUDNOVETS, Aleksei Yu, and Sodnom B. BAINOV. "Conditional optimization of mortgage loan parameters." Economic Analysis: Theory and Practice 20, no. 3 (March 30, 2021): 577–88. http://dx.doi.org/10.24891/ea.20.3.577.
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Subject. In the article, we calculate the period of a borrowing, in which the interest burden and monthly payments are minimal. Objectives. The aim is to create an algorithm to optimize the term of the mortgage loan, taking into account the amount of debt and interest rate of the loan. Methods. The study employs methods to analyze the formula of annuity payments of a mortgage loan, and to model the final optimization algorithm. Results. We developed an algorithm, to determine the optimal term of the loan, using the certain loan amount and interest rate. The study considers the case for banks, operating in Krasnoyarsk. Conclusions. The paper considers two parameters of a mortgage loan, i.e. the interest burden and the monthly payment, which is calculated, according to the annuity formula. Both parameters depend on the loan amount, the interest rate, and the period of the loan. However, the interest rate is set by the bank, so the only parameter that the borrower can change is the period of payment. By changing the term to maturity, it is possible to have a loan with minimum payments and interest burden. For the purpose of optimization, we consider both parameters simultaneously. Taking into account their versatile nature, we consider the optimal time, when payments and interest burden are minimized. The paper also reviews the case of optimization of credit parameters for construction enterprises of the Krasnoyarsk Krai, in various banks.
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Pushkarskaya, Helen, and Maria I. Marshall. "Lump Sum versus Annuity: Choices of Kentucky Farmers during the Tobacco Buyout Program." Journal of Agricultural and Applied Economics 41, no. 3 (December 2009): 613–24. http://dx.doi.org/10.1017/s1074070800003102.
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Our study uses the data collected during the implementation of the tobacco buyout program in Kentucky to evaluate how rural households, diverse in income, age, family structure, location, education level, and other characteristics, made a choice between annuities and a lump-sum payment. Subjects in our field experiment did not have to retire or change their employment, as did subjects in many field studies of the choice between annuities and lump-sum payments, which allowed us to evaluate the relationship between the option choice and a decision whether to exit the tobacco market. Our results suggest that while discounted utility theory gives acceptable predictions of the farmers' behavior, other factors have to be taken into consideration. First, there are consistent biases that describe individual intertemporal behavior, such as availability bias or acquiescence bias. Second, there is a certain degree of heterogeneity in individual intertemporal preferences that correlates with their personal characteristics, such as education and production status. Third, our analysis revealed that the decision to exit the tobacco market positively correlated with the decision to take a lump-sum payment.
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Bosnjak, Marinko. "The public debt of the Republic of Serbia: The current situation and perspectives." Ekonomski anali 50, no. 164 (2005): 119–34. http://dx.doi.org/10.2298/eka0564119b.
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The paper deals with the internal and external debt situation of the Republic of Serbia based on the data relating to 2000 and 2004, issued by the Ministry of Finance, as well as the basic macroeconomic assumptions for the regular servicing of debts. The general results of this research indicate that the key institutional assumptions for the strengthening of annuity payment ability are consistent reforms and economic policies, and the key economic assumptions for debt repayment are economics growth, stability and reduction in the volume and changing the structure of government consumption. Investment and export growth which provides for growth in gross domestic product and income in foreign currency, which should be sufficient for debts repayment in the next five years, expressed in time periods as well as annuity payments per year, are the key significance for servicing of debts. Increase in economy efficiency, as well as the efficient use of resources obtained by credit facilities, are guaranties of maintaining the balance between volume and repayment capabilities of debts.
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Niu, Gao, Jeyaraj Vadiveloo, and Cary Lakenbach. "A Financial Protection Strategy for Families That Have a Child With Down Syndrome." Journal of Financial Counseling and Planning 29, no. 1 (June 2018): 91–102. http://dx.doi.org/10.1891/1052-3073.29.1.91.
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Families that have a child with Down syndrome (DS) are facing financial challenges due to the increased life expectancy and daily life dependencies that he or she experiences. This article uses pediatric findings to supplement child mortality impairment assumptions and proposes a combination annuity pricing model to explore an annuity solution for families that have a child with DS. A Markov chain Monte Carlo simulation model is constructed with features such as a fixed death benefit, return of premium, different premium payment patterns, and the widowhood effect factor. The results indicate that such a product is generally affordable for families that have a child with DS to cover their child’s longevity risk and increased dependency needs.
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Warner, John T., and Saul Pleeter. "The Personal Discount Rate: Evidence from Military Downsizing Programs." American Economic Review 91, no. 1 (March 1, 2001): 33–53. http://dx.doi.org/10.1257/aer.91.1.33.
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The military drawdown program of the early 1990's provides an opportunity to obtain estimates of personal discount rates based on large numbers of people making real choices involving large sums. The program offered over 65,000 separatees the choice between an annuity and a lump-sum payment. Despite break-even discount rates exceeding 17 percent, most of the separatees selected the lump sum—saving taxpayers $1.7 billion in separation costs. Estimates of discount rates range from 0 to over 30 percent and vary with education, age, race, sex, number of dependents, ability test score, and the size of payment. (JEL D91)
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Eroglu, Abdullah, and Harun Ozturk. "New mathematical annuity models in a skip payment loan with rhythmic skips." Engineering Economist 61, no. 1 (January 2, 2016): 70–78. http://dx.doi.org/10.1080/0013791x.2015.1095382.
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Onikiienko, Serhii, Mykhailo Dyba, and Iuliia Gernego. "Econometric modelling of bank activities: value-based approach to the problem loans terms’ rescheduling." SHS Web of Conferences 107 (2021): 09002. http://dx.doi.org/10.1051/shsconf/202110709002.
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The permanent state of the financial crisis has predictably brought to the forefront such traditional problem of banking as problem loans. This research aims to work out an econometric approach to the solution of the problem of loans terms’ rescheduling. For this purpose, we, firstly, treated credit as a bank’s investment project with cashflows’ chart including initial outflow (principal) and following inflows represented by loan payments. Secondly, we combined the schematic representation of loan’s cashflows with NPV formula accustomed to loan’s cashflows and it allowed to create the econometric models for three types of loan: classic, annuity, serial. Thirdly, for the case when borrower breaks a loan’s payment schedule and it leads to the reduction of loan’s NPV and loss of the wealth of bank’s shareholders, respectively, we outlined special compensative models of cashflows where default in payment is interpreted by the lender as an additional forced loan. We suggested modifying the loan terms (interest rate or effective period of the loan agreement) for the rest of payment periods. Fourthly, we laid the special compensative models of forced loans’ cashflows a top corresponded initial cashflows of loans and this has made it possible to get formulas calculating the modified interest rate and the additional number of loans’ payment periods with the aid of backward calculation. As a result, we developed the econometric models of the loan terms’ modifications based on the prolongation of the initial credit period and the increasing of the initial interest rate.
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노건엽. "A Study on Risk Analysis of Variable Annuity Based on Premium Payment Method." Journal of Risk Management 24, no. 1 (June 2013): 227–59. http://dx.doi.org/10.21480/tjrm.24.1.201306.008.
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Invernisi, S., G. Locatelli, S. Cappoli, G. Longo, A. Butti, G. Baradel, and D. Pozza. "Urology and the Work Environment (II): Forensic Evaluation of Urological Trauma in Work Injuries." Urologia Journal 59, no. 1 (February 1992): 75–78. http://dx.doi.org/10.1177/039156039205900119.
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After a study of case histories relating to work accidents followed by admittance to hospital, the authors then closely examine the question of temporary disablement and eventual consequences. The most common and interesting forensic findings are connected with traumatology of the urethra, the external genitalia and the kidney. With reference to President's Decree No. 1124 of 30.6.65 and to Italian law No. 457 of 8.8.72, it is pointed out that evaluation of disablement must always be carried out in relation to the general working capacity of a factory or agricultural worker and not to the specific working capacity. An annuity payment for the disabled worker also exists when there is permanent disablement of over 10%; evaluation of consequences becomes definitive only 10 years after the annuity has been established. Percentages relating to the loss of a kidney, bladder complications, urethral strictures and genital injuries are given.
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ALBRECHT, PETER, and RAIMOND MAURER. "Self-Annuitization, Consumption Shortfall in Retirement and Asset Allocation: The Annuity Benchmark." Journal of Pension Economics and Finance 1, no. 3 (November 2002): 269–88. http://dx.doi.org/10.1017/s1474747202001117.
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The present paper considers a retiree of a certain age who is endowed with a certain amount of wealth and is facing alternative investment opportunities. One possibility is to buy a single premium immediate (participating) annuity-contract. This insurance product pays a life-long pension payment of a certain amount, depending e.g. on the age of the retiree, the operating cost of the insurance company and the return the company is able to realize from its investments. The alternative possibility is to invest the single premium into a portfolio of mutual funds and to periodically withdraw a fixed amount that is assumed to be equivalent to the consumption stream generated by the annuity. The particular advantage of this self-annuitization strategy compared to the life annuity is its greater liquidity and the possibility of leaving money for heirs. However, the risk of self-annuitization is to outlive the assets before the uncertain date of death. The risk can thus be specified by considering the probability of running out of money before the uncertain date of death. The determination of this personal probability of consumption shortfall with respect to German insurance and capital market conditions is the objective of this paper.
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Chen, An, Peter Hieber, and Jakob K. Klein. "TONUITY: A NOVEL INDIVIDUAL-ORIENTED RETIREMENT PLAN." ASTIN Bulletin 49, no. 1 (December 26, 2018): 5–30. http://dx.doi.org/10.1017/asb.2018.33.
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AbstractFor insurance companies in Europe, the introduction of Solvency II leads to a tightening of rules for solvency capital provision. In life insurance, this especially affects retirement products that contain a significant portion of longevity risk (e.g., conventional annuities). Insurance companies might react by price increases for those products, and, at the same time, might think of alternatives that shift longevity risk (at least partially) to policyholders. In the extreme case, this leads to so-called tontine products where the insurance company’s role is merely administrative and longevity risk is shared within a pool of policyholders. From the policyholder’s viewpoint, such products are, however, not desirable as they lead to a high uncertainty of retirement income at old ages. In this article, we alternatively suggest a so-called tonuity that combines the appealing features of tontine and conventional annuity. Until some fixed age (the switching time), a tonuity’s payoff is tontine-like, afterwards the policyholder receives a secure payment of a (deferred) annuity. A tonuity is attractive for both the retiree (who benefits from a secure income at old ages) and the insurance company (whose capital requirements are reduced compared to conventional annuities). The tonuity is a possibility to offer tailor-made retirement products: using risk capital charges linked to Solvency II, we show that retirees with very low or very high risk aversion prefer a tontine or conventional annuity, respectively. Retirees with medium risk aversion, however, prefer a tonuity. In a utility-based framework, we therefore determine the optimal tonuity characterized by the critical switching time that maximizes the policyholder’s lifetime utility.
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Delaney, Charles J., Steven P. Rich, and John T. Rose. "A Paradox Within The Time Value Of Money: A Critical Thinking Exercise For Finance Students." American Journal of Business Education (AJBE) 9, no. 2 (March 31, 2016): 83–86. http://dx.doi.org/10.19030/ajbe.v9i2.9638.
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This study presents a paradox within the time value of money (TVM), namely, that the interest-principal sequence embedded in the payment stream of an amortized loan is exactly the opposite of the interest-principal sequence implicit in the present value of a matching annuity. We examine this inverse sequence, both mathematically and intuitively, and argue that it provides an excellent exercise for finance students to explore, both to enhance their critical thinking skills as well as to strengthen their understanding of TVM concepts. Additionally, such an exercise will involve them actively in the learning process, as mandated by AACSB International’s Eligibility Procedures and Standards for Business Accreditation.
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Moretti, Nikolaj, and Johannes Bartels. "Interaction effects between dynamic hybrid products and traditional deferred annuities in the German life insurance market." Financial Markets and Portfolio Management 35, no. 2 (February 1, 2021): 193–224. http://dx.doi.org/10.1007/s11408-020-00367-z.
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AbstractDynamic hybrid products emerged in 2007 and are now well established in the German life insurance market. In this article, we study interaction effects between dynamic hybrid products and traditional deferred annuity contracts, that are sold by the same insurance company. The key question we investigate is whether the presence of dynamic hybrid products has a negative effect on the payout of traditional insurance products. We do so by using data drawn from a Monte Carlo simulation that is based on a model presented in this article. These data reveal that dynamic hybrid products reduce the payment to policyholders of traditional deferred annuities via the channel of surplus participation.
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DWIPAYANA, I. GUSTI AGUNG GEDE, I. NYOMAN WIDANA, and KARTIKA SARI. "MENENTUKAN FORMULA CADANGAN PREMI ASURANSI JIWA LAST SURVIVOR MENGGUNAKAN METODE NEW JERSEY." E-Jurnal Matematika 8, no. 4 (November 29, 2019): 264. http://dx.doi.org/10.24843/mtk.2019.v08.i04.p263.
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Last survivor life insurance is a type of life insurance for two or more people, with premium payment up to the last death of the insured and at that time also provide the benefit from the insurer. The purpose of this research was to determine the formula for last survivor life insurance premium reserve using New Jersey method. To calculate the reserve: first we determine the benefit, and then the annuity and finnaly the annual premium. The premium reserve value in the New Jersey method on first year is zero. The premium reserve in the New Jersey method starts in the second year, for years, with where n represents the term of the insurance participant’s contract.
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Bütler, Monika, Lukas Inderbitzin, Jonathan F. Schulz, and Stefan Staubli. "Die Auswirkungen bedarfsabhängiger Leistungen: Ergänzungsleistungen in der Schweiz." Perspektiven der Wirtschaftspolitik 13, no. 3 (August 2012): 179–95. http://dx.doi.org/10.1111/j.1468-2516.2012.00384.x.
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AbstractAs in many other countries, means tested benefits constitute an important part of the Swiss old age security system and disability insurance. In contrast to universal benefits, such targeted transfers are intended to only support the ones in need and thereby lead to low level of public expenses. However, individuals face strong incentives at various stages in life to adapt their behavior in order to become eligible. Using the Swiss Erg¨anzungsleistungen as an example, we argue that means tested benefits increase the incentive to apply for disability benefits, raise the attractiveness of early retirement, and induce individuals to favor a lump sum payment over an annuity. Moreover, they decrease the incentive to purchase private long-term care insurance.
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Chen, An, and Łukasz Delong. "OPTIMAL INVESTMENT FOR A DEFINED-CONTRIBUTION PENSION SCHEME UNDER A REGIME SWITCHING MODEL." ASTIN Bulletin 45, no. 2 (January 20, 2015): 397–419. http://dx.doi.org/10.1017/asb.2014.33.
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AbstractWe study an asset allocation problem for a defined-contribution (DC) pension scheme in its accumulation phase. We assume that the amount contributed to the pension fund by a pension plan member is coupled with the salary income which fluctuates randomly over time and contains both a hedgeable and non-hedgeable risk component. We consider an economy in which macroeconomic risks are existent. We assume that the economy can be in one ofIstates (regimes) and switches randomly between those states. The state of the economy affects the dynamics of the tradeable risky asset and the contribution process (the salary income of a pension plan member). To model the switching behavior of the economy we use a counting process with stochastic intensities. We find the investment strategy which maximizes the expected exponential utility of the discounted excess wealth over a target payment, e.g. a target lifetime annuity.
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Metcs, Robert. "The Common Intention of the Parties and the Payment of Annuities Under the Numbered Treaties: Who Assumed the Risk of Inflation?" Alberta Law Review 46, no. 1 (November 1, 2008): 41. http://dx.doi.org/10.29173/alr238.
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The article examines a key term in the so-called Numbered Treaties between the Crown and the Indians of the northwest: the provisions for “annuities” or annual payments in perpetuity by the Crown to the Indian signatories. The author observes that the Crown, in the performance of this obligation, has adhered consistently to the monetary law principle known as nominalism, thus asserting that the common intention of the parties to these treaties was for the First Nations signatories to assume the entire risk of any future loss in value or purchasing power attached to the nominal sums provided. It is argued, however, that the stability of the annuity in terms of purchasing power (with a consequent placement of the risk of any decline in the buying power of the dollar on the Crown) must, if not found explicitly within the terms of the treaties as the expressed intent of the parties, be implied as a reflection of their unexpressed intent. Any interpretation that entails the risk of inflation being assumed by the First Nations signatories must therefore be based entirely on factors other than the common intention of the parties to the Numbered Treaties.
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McGowan, Carl B., and Donald T. Joyner. "Computing Bond Values to Teach Time Value of Money Principles." Applied Finance and Accounting 1, no. 2 (June 5, 2015): 64. http://dx.doi.org/10.11114/afa.v1i2.862.
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The objective of this paper is to demonstrate how to use bond valuation to teach students how to use a financial calculator. In this paper, a single bond issuance is examined using three different yields to maturity (i.e. market rates). The present values of a $1000 bond issue, valued with five years to maturity and a ten percent coupon rate, are determined using three different yields to maturity: 8% (which would result in a premium), 10% (which would result in neither a discount nor a premium), and 12% (which would result in a discount). The present value of the bond is determined by calculating the present values of both the coupon payment stream (an annuity) and the maturity value (present value of a lump sum) given three different situations. All three values are determined for each year as the time to maturity decreases. A discount (premium) from a change in the YTM is reduced each year until maturity. The results are shown in tables and graphed in Figure 2.
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Bodіuk, Adam. "Ground of mechanism of pay in a budget for the pipelinetransporting of hydrocarbon commodities." Problems of Innovation and Investment Development, no. 20 (November 2019): 141–52. http://dx.doi.org/10.33813/2224-1213.20.2019.14.
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The subject of the study is the mechanism for determining the fiscal fee forthe main transportation of hydrocarbon goods as a resource concept. The purposeof this article is to justify the nature and prospects of using, instead of currentrent, hydrocarbon fiscal-main income as a fiscal payment, which is brought intothe state budget by operators of the main hydrocarbon-transport system as business entities for their transportation of hydrocarbons and products of their processing through main pipelines appropriate to the economic requirements. Theresearch methodology is determined by a combination of methods: a) cognition:legal analysis (study of the regulatory framework for the use of rent); b) justification: abstract logical analysis (definition of the concepts of hydrocarbon fiscalmain income); c) generalization (substantiation of conclusions and proposals).Results of work. In the process of analyzing the regulatory legal acts that regulate the use of current annuity as payment to the budget for the main transportation of hydrocarbons, it was established that it is not a tax in the interpretationof PKU, since the essence does not meet the official definition of tax, does notmeet the accepted definition of the concept of rent. The accepted nature andmechanism of paying rent for the transportation of hydrogen resources and associated revenues of the state and users of the main hydrogen transport systemand the unpromising nature of its use as a fiscal payment are analyzed. Conclusions.It is proposed that the state pay for the territorial pumping of hydrocarbon resources according to our triple principle as hydrocarbon fiscal-main income, whichcorresponds to its essence, and accordingly change the mechanism for calculatingand depositing funds to treasury accounts. Since the funds come to the revenueside of the state budget, that is, inherently belong to state revenue. The creationof such a mechanism needs certain studies, justifications and government decisions. The same applies to land use, since the quality indicators of soils, wherethe laid pipelines are territorially different. In addition, there is a process ofchanging land for its intended purpose, for the property. The fee for movinghydrocarbon resources should be calculated depending on the type of transport,including pipelines, for a set of indicators: quantity and quality of goods, time,main tariffs and distance of its movement. The amount may be adjusted usingfactors officially established by the CMU. Since the pipelines are located in territorial lands, part of this fee should be transferred to the territorial local budgets.Theoretically, the economic use of trunk pipelines should be considered as a typeof economic environmental management. Therefore, this type of government revenue should be determined by a set of indicators, as well as taking into account the economic interests of business entities authorized by the CMU. Thus, theimplementation of our proposed fiscal payment is relevant, has scientific noveltyand promising practical significance, therefore, for state recognition it is proposedto include it in the Tax Code of Ukraine.
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Wilde, Joerg. "Generalization of the Annuity Factor." Accounting and Finance Research 7, no. 2 (February 5, 2018): 83. http://dx.doi.org/10.5430/afr.v7n2p83.
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The well-known Annuity Factor, restricted to constant payments only, can be generalized for time dependent payments. A Generalized Annuity Factor (GAF) broadens the application potential considerably as is shown exemplarily for the valuation of loans and pension obligations. For the first time for such linear and nonlinear payments over time, compressed closed-form formulae for important financial key numbers such as present value, duration, convexity or value at risk can be derived. Moreover, easy computation makes General Annuity Factors a useful valuation tool especially in the field of finance and accounting. As General Annuity Factors can be implemented as User Defined Functions in a spreadsheet program, calculations can also be done in smaller firms or public services. Because of its computational efficiency the new instrument is also suitable for far-sighted economical models such as Asset Liability Management models (ALM) or life-cycle valuation models concerning products or investments.
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Mjøs, Aksel, and Svein-Arne Persson. "Level-Dependent Annuities: Defaults of Multiple Degrees." Journal of Financial and Quantitative Analysis 45, no. 5 (August 12, 2010): 1311–39. http://dx.doi.org/10.1017/s0022109010000475.
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AbstractMotivated by the effect on valuation of stopped or reduced debt coupon payments from a company in financial distress, we value a level-dependent annuity contract where the annuity rate depends on the value of an underlying asset process. The range of possible values of this asset is divided into a finite number of regions, with constant annuity rates within each region. We present closed-form formulas for the market value of level-dependent annuities contracts when the market value of the underlying asset is assumed to follow a geometric Brownian motion. Such annuities occur naturally in models of debt with credit risk in financial economics. Our results are applied for valuing both corporate debt with suspended interest payments under the U.S. Chapter 11 provisions and loans with contractual level-dependent interest rates.
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Abbas, A. E., and J. Chudziak. "One-switch utility functions with annuity payments." Applied Mathematics and Computation 219, no. 14 (March 2013): 7699–710. http://dx.doi.org/10.1016/j.amc.2013.01.058.
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Wilde, Joerg. "What is the Return Rate of a Corporate Pension Scheme? Generalized Annuity Factors Simplify Calculation." Accounting and Finance Research 9, no. 1 (February 17, 2020): 76. http://dx.doi.org/10.5430/afr.v9n1p76.
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Corporate pension schemes are widely spread especially in Northern Europe, North America, Japan. Often the major portion of defined contributions to the scheme is shouldered by the employer. A crucial question for an employee is, whether the return from his/her corporate pension plan - taking into account the corporate engagement and eventually governmental savings promotion - is favourable in comparison to other capital products for the time of retirement. This question is not answered by the absolute return in form of the future pension amount. Additionally, the employee must know the relative return, the Pension Rate of Return (PRR), in relation to what he/she has invested in form of employee contributions into the pension plan during his/her work life. Focussing on better pension information and also on counteraction to melting interest return, two current topics will be addressed. A very useful evaluation instrument for this task is the Generalized Annuity Factor (GAF). It is a generalization of the well-known Annuity Factor, which is restricted to constant payments only. With GAF any time dependent payments, e.g. linear or more complex nonlinear payments over time can be valued by a compressed closed-form formula in the same manner as constant payments by the classic Annuity Factor. Pension payments regarding mortality are such complex payments depending systematically on age. Because of its computational efficiency the new instrument simplifies calculations to be done also in smaller funds, firms or public services with common spreadsheet programs.
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Biagini, Francesca, Thorsten Rheinländer, and Jan Widenmann. "HEDGING MORTALITY CLAIMS WITH LONGEVITY BONDS." ASTIN Bulletin 43, no. 2 (May 2013): 123–57. http://dx.doi.org/10.1017/asb.2013.12.
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AbstractWe study mean–variance hedging of a pure endowment, a term insurance and general annuities by trading in a longevity bond with continuous rate payments proportional to the survival probability. In particular, we discuss the introduction of a gratification annuity as an interesting insurance product for the life insurance market. The optimal hedging strategies are determined via their Galtchouk–Kunita–Watanabe decompositions under specific, yet sufficiently general model assumptions. The results are then further illustrated by assuming a general affine structure of the mortality intensity process. The optimal hedging strategies as well as the residual hedging error of a gratification annuity and a simple life annuity are finally investigated with numerical simulations, which illustrate the nice features of the gratification annuity for the insurance industry.
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DENUIT, M., S. HABERMAN, and A. E. RENSHAW. "Longevity-contingent deferred life annuities." Journal of Pension Economics and Finance 14, no. 3 (January 13, 2015): 315–27. http://dx.doi.org/10.1017/s147474721400050x.
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AbstractConsidering the substantial systematic longevity risk threatening annuity providers’ solvency, indexing benefits on actual mortality improvements appears to be an efficient risk management tool, as discussed in Denuit et al. (2011) and Richter and Weber (2011). Whereas these papers consider indexing annuity payments, the present work suggests that the length of the deferment period could also be subject to revision, providing longevity-contingent deferred life annuities.
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Meyer, Charles W., and Nancy L. Wolff. "Intercohort and Intracohort Redistribution under Old Age Insurance: The 1962–1972 Retirement Cohorts." Public Finance Quarterly 15, no. 3 (July 1987): 259–81. http://dx.doi.org/10.1177/109114218701500302.
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Although Social Security Old Age Insurance (OAI) is similar in some respects to a private annuity, benefits typically contain large intercohort and intra-cohort redistribution components. The former are declining over time but the latter are a permanent feature of the program. This study disentangles the actuarially fair and redistributive elements in OAI benefit payments to a sample of individuals from the 1962–1972 retirement cohorts. Incidence of benefits, actuarially fair annuity payments, and redistributive components across income groups are presented in tabular form. Regression analysis is used to estimate the relationship between redistribution components, as a percentage of benefits, and various characteristics of the retirement population.
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Ji, Min, and Rui Zhou. "Demographic risk in deep-deferred annuity valuation." Annals of Actuarial Science 11, no. 2 (April 3, 2017): 286–314. http://dx.doi.org/10.1017/s174849951700001x.
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AbstractA deep-deferred annuity is a deferred annuity where payments start very late in life, i.e. well after the normal retirement age. This annuity has received much attention lately as it was made accessible to 401(k) plans in the United States in 2014. By transferring the risk of outliving retirement savings at high ages to annuity providers, deep-deferred annuities provide annuitants with enhanced later-life financial security. However, the valuation of this annuity suffers from high uncertainty because the mortality data at high ages are sparse and possibly unreliable. In this paper, we use risk ratio to measure demographic risk in the valuation. Demographic risk is decomposed into the following four components: (1) mortality tail curve risk, (2) mortality improvement model risk, (3) parameter risk in mortality tail curves, and (4) parameter risk in mortality improvement rate models. Our quantitative analysis aims to provide insights into the development and risk management of deep-deferred annuities.
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Bychkova, Gul'fira. "FINANCIAL ACCOUNTING: A PRACTICAL APP." Scientific Papers Collection of the Angarsk State Technical University 2018, no. 1 (March 4, 2020): 247–51. http://dx.doi.org/10.36629/2686-7788-2020-247-251.
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Tadić, Milan. "Economic Effects Real Estate Tax." ECONOMICS 4, no. 1 (June 1, 2016): 137–50. http://dx.doi.org/10.1515/eoik-2015-0021.
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Summary The real estate tax is usually a fiscal instrument which performs the property tax. When it comes to real property or immovable this term include: apartments, houses, land, cottages, excess housing landscape and more. The real estate tax as a form of the fiscal charges ownership or use of certain forms of real estate, and the revenue from this tax is levied on the area where the property is located regardless of the place of residence of its owner. The tax base for the calculation of this tax usually consists of the market, estimated or annuity value of certain real estate. This form of taxation in the Republic of Serbian applies from 1.1.2012., and its introduction has been replaced by former property taxes. The differences between the two concepts mentioned taxes are numerous and significant. Among the more important are: subject to taxation under the new concept of the real estate rather than law, a taxpayer is any property owner rather than the holder of rights to immovable property tax base is the market value of real estate which is replaced by the payment of taxes per square meter of usable area, the rate of property tax is determined local government, which can not be lower than 0.05% of the estimated value of the real estate nor higher than 0.5% of the appraised value of real estate. The last change, ie. The new law on Property Tax from 5.11.2015. was determined by the tax rate to 20%. The fact that local governments each of them determines the tax rate on real estate which range from high to low rates of multiple, makes this tax is progressive. Progression is particularly expressed in the distinction applied tax rates of developed and undeveloped municipalities, where we have a case that less developed tolerate a higher tax burden, which leads to negative economic effects. However, real estate tax has its own economic and social characteristics which must be aligned with the objectives of tax policy. This means that the real estate tax should be considered from the standpoint of the entire tax system and not from the standpoint of individual income tax forms.
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Lorson, Jonas, and Joël Wagner. "The pricing of hedging longevity risk with the help of annuity securitizations." Journal of Risk Finance 15, no. 4 (August 18, 2014): 385–416. http://dx.doi.org/10.1108/jrf-02-2014-0016.
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Purpose – The purpose of this paper is to develop a model to hedge annuity portfolios against increases in life expectancy. Across the globe, and in the industrial nations in particular, people have seen an unprecedented increase in their life expectancy over the past decades. The benefits of this apply to the individual, but the dangers apply to annuity providers. Insurance companies often possess no effective tools to address the longevity risk inherent in their annuity portfolio. Securitization can serve as a substitute for classic reinsurance, as it also transfers risk to third parties. Design/methodology/approach – This paper extends on methods insurer's can use to hedge their annuity portfolio against longevity risk with the help of annuity securitization. Future mortality rates with the Lee-Carter-model and use the Wang-transformation to incorporate insurance risk are forecasted. Based on the percentile tranching method, where individual tranches are aligned to Standard & Poor's ratings, we price an inverse survivor bond. This bond offers fix coupon payments to investors, while the principal payments are at risk and depend on the survival rate within the underlying portfolio. Findings – The contribution to the academic literature is threefold. On the theoretical side, building on the work of Kim and Choi (2011), we adapt their pricing model to the current market situation. Putting the principal at risk instead of the coupon payments, the insurer is supplied with sufficient capital to cover additional costs due to longevity. On the empirical side, the method for the German market is specified. Inserting specific country data into the model, price sensitivities of the presented securitization model are analyzed. Finally, in a case study, the procedure to the annuity portfolio of a large German life insurer is applied and the price of hedging longevity risk is calculated. Practical implications – To illustrate the implication of this bond structure, several sensitivity tests were conducted before applying the pricing model to the retail sample annuity portfolio from a leading German life insurer. The securitization structure was applied to calculate the securitization prices for a sample portfolio from a large life insurance company. Social implications – The findings contribute to the current discussion about how insurers can face longevity risk within their annuity portfolios. The fact that the rating structure has such a severe impact on the overall hedging costs for the insurer implies that companies that are willing to undergo an annuity securitization should consider their deal structure very carefully. In addition, we have pointed out that in imperfect markets, the retention of the equity tranche by the originator might be advantageous. Nevertheless, one has to bear in mind that by this behavior, the insurer is able to reduce the overall default risk in his balance sheet by securitizing a life insurance portfolio; however, the fraction of first loss pieces from defaults increases more than proportionally. The insurer has to take care to not be left with large, unwanted remaining risk positions in his books. Originality/value – In this paper, we extend on methods insurer's can use to hedge their annuity portfolio against longevity risk with the help of annuity securitization. To do so, we take the perspective of the issuing insurance company and calculate the costs of hedging in a four-step process. On the theoretical side, building on the work of Kim and Choi (2011), we adapt their pricing model to the current market situation. On the empirical side, we specify the method for the German market. Inserting specific country data into the model, price sensitivities of the presented securitization model are analyzed.
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Chen, An, Manuel Rach, and Thorsten Sehner. "ON THE OPTIMAL COMBINATION OF ANNUITIES AND TONTINES." ASTIN Bulletin 50, no. 1 (January 2020): 95–129. http://dx.doi.org/10.1017/asb.2019.37.
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AbstractTontines, retirement products constructed in such a way that the longevity risk is shared in a pool of policyholders, have recently gained vast attention from researchers and practitioners. Typically, these products are cheaper than annuities, but do not provide stable payments to policyholders. This raises the question whether, from the policyholders' viewpoint, the advantages of annuities and tontines can be combined to form a retirement plan which is cheaper than an annuity, but provides a less volatile retirement income than a tontine. In this article, we analyze and compare three approaches of combining annuities and tontines in an expected utility framework: the previously introduced “tonuity”, a product very similar to the tonuity which we call “antine” and a portfolio consisting of an annuity and a tontine. We show that the payoffs of a tonuity and an antine can be replicated by a portfolio consisting of an annuity and a tontine. Consequently, policyholders achieve higher expected utility levels when choosing the portfolio over the novel retirement products tonuity and antine. Further, we derive conditions on the premium loadings of annuities and tontines indicating when the optimal portfolio is investing a positive amount in both annuity and tontine, and when the optimal portfolio turns out to be a pure annuity or a pure tontine.
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STABILE, GABRIELE. "OPTIMAL TIMING OF THE ANNUITY PURCHASE: COMBINED STOCHASTIC CONTROL AND OPTIMAL STOPPING PROBLEM." International Journal of Theoretical and Applied Finance 09, no. 02 (March 2006): 151–70. http://dx.doi.org/10.1142/s0219024906003524.
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The paper examines the optimal annuitization time and the optimal consumption/investment strategies for a retired individual subject to a constant force of mortality in an all-or-nothing framework. We allow for a different utility of consumption before and after annuitization. For a general family of preferences we characterize the value function and the optimal controls of the resulting combined stochastic control and optimal stopping problem. Assuming power utility functions we obtain explicit solutions. We show that if the individual evaluates the consumption flow and the annuity payments stream in the same way, then, depending on the parameters of the economy, the annuity is purchased at retirement or never. In the case when the individual is more risk averse in the annuity assessment, it is optimal to defer the annuitization until her wealth reaches a threshold, and such threshold depends on the parameters of the economy.
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Ferraro, Steven R., and Richard W. Powell. "The National Commission On Fiscal Responsibility And Reform: How Its Report Can Impact Marginal Tax Rates." Journal of Business & Economics Research (JBER) 9, no. 6 (May 24, 2011): 25. http://dx.doi.org/10.19030/jber.v9i6.4376.
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The United States government has a serious budget problem. In 2010 President Barack Obama created the National Commission on Fiscal Responsibility and Reform to deal with the problem by identifying policies to improve the fiscal situation. Among the Commissions recommendations was a proposal to modify payments under Social Security. For most recipients, the modifications would decrease Social Security benefits although benefits would increase for the poorest quintile of recipients. The purpose of this paper is to construct a model for evaluating the proposed shift in Social Security payments. From the perspective of Social Security recipients, the model shows the cutbacks as the partial loss of an annuity stream, as the loss of a lump sum that is capable of generating the partial annuity stream, and as a tax increase for the remainder of the recipients working years as they deposit a special tax into a retirement account designed to replace the lost benefits.
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Stubbs, John, and Jacob Adetunji. "UK pension changes in 2015: some mathematical considerations." Mathematical Gazette 100, no. 548 (June 14, 2016): 193–202. http://dx.doi.org/10.1017/mag.2016.55.
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Since April 2015 there has been no legal requirement in the UK to purchase an annuity with pension savings [1] while for those who reach state pension age on or after 6th April 2016 the UK Government changed the state pension deferral arrangements [2]. The latter refers to an arrangement whereby a pensioner can receive an enhanced state pension by deferring its uptake for an arbitrary number of years. These two changes raise certain questions for prospective pensioners which are worthy of some mathematical consideration.An annuity is a guaranteed income for life in exchange for a certain sum of money: the pension pot. An alternative to the annuity since April 2015 is a ‘draw down scheme’ in which the pension pot can be used almost like an ordinary bank account and money periodically withdrawn. These two choices arise from ‘defined contribution’ pension arrangements. By contrast ‘defined benefit’ work-based (company) pensions allow no such choice and are not considered further here apart from the special case of the UK state pension. With an annuity a further option to consider, and one which predates the 2015 changes, is whether to take payments that are fixed or index-linked to inflation. Only the UK state pension offers a late retirement enhanced pension if its uptake is deferred.
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Denuit, M., S. Haberman, and A. E. Renshaw. "Comonotonic Approximations to Quantiles of Life Annuity Conditional Expected Present Values: Extensions to General Arima Models and Comparison with the Bootstrap." ASTIN Bulletin 40, no. 1 (May 2010): 331–49. http://dx.doi.org/10.2143/ast.40.1.2049232.
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AbstractThis paper aims to provide accurate approximations for the quantiles of the conditional expected present value of the payments made by the annuity provider, given the future path of the Lee-Carter time index. Conditional cohort and period life expectancies are also considered. The paper also addresses some associated simulation issues, which, hitherto, have been unresolved.
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Matheson, Victor A., and Kent R. Grote. "Jacking Up the Jackpot: Are Lotto Consumers Fooled by Annuity Payments?" Public Finance Review 31, no. 5 (September 2003): 550–67. http://dx.doi.org/10.1177/1091142103254571.
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Simon, Power, and Peter G. C. Townley. "The impact of government social security payments on the annuity market." Insurance: Mathematics and Economics 12, no. 1 (February 1993): 47–56. http://dx.doi.org/10.1016/0167-6687(93)90998-5.
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Price, Hermione C., Philip M. Clarke, Alastair M. Gray, and Rury R. Holman. "Life Expectancy in Individuals With Type 2 Diabetes: Implications for Annuities." Medical Decision Making 30, no. 3 (December 30, 2009): 409–14. http://dx.doi.org/10.1177/0272989x09349960.
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Background. Insurance companies often offer people with diabetes ‘‘enhanced impaired life annuity’’ at preferential rates, in view of their reduced life expectancy. Objective. To assess the appropriateness of ‘‘enhanced impaired life annuity’’ rates for individuals with type 2 diabetes. Patients. There were 4026 subjects with established type 2 diabetes (but not known cardiovascular or other life-threatening diseases) enrolled into the UK Lipids in Diabetes Study. Measurements. Estimated individual life expectancy using the United Kingdom Prospective Diabetes Study (UKPDS) Outcomes Model. Results. Subjects were a mean (SD) age of 60.7 (8.6) years, had a blood pressure of 141/83 (17/10) mm Hg, total cholesterol level of 4.5 (0.75) mmol/L, HDL cholesterol level of 1.2 (0.29) mmol/L, with median (interquartile range [IQR]) known diabetes duration of 6 (3—11) years, and HbA1c of 8.0% (7.2—9.0). Sixty-five percent were male, 91% white, 4% Afro-Caribbean, 5% Indian-Asian, and 15% current smokers. The UKPDS Outcomes Model median (IQR) estimated age at death was 76.6 (73.8—79.5) years compared with 81.6 (79.4—83.2) years, estimated using the UK Government Actuary’s Department data for a general population of the same age and gender structure. The median (IQR) difference was 4.3 (2.8—6.1) years, a remaining life expectancy reduction of almost one quarter. The highest value annuity identified, which commences payments immediately for a 60-year-old man with insulin-treated type 2 diabetes investing 100,000, did not reflect this difference, offering 7.4K per year compared with 7.0K per year if not diabetic. Conclusions. The UK Government Actuary’s Department data overestimate likely age at death in individuals with type 2 diabetes, and at present, ‘‘enhanced impaired life annuity’’ rates do not provide equity for people with type 2 diabetes. Using a diabetes-specific model to estimate life expectancy could provide valuable information to the annuity industry and permit more equitable annuity rates for those with type 2 diabetes.
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lewis, Richard. "Legal Limits on the Structured Settlement of Damages." Cambridge Law Journal 52, no. 3 (September 1993): 470–86. http://dx.doi.org/10.1017/s0008197300099979.
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A structured settlement is a new way of paying common law damages for personal injury or death. It has received strong support from the judiciary and a very favourable response from the Law Commission in its recent consultation paper. The defendant's insurer, usually after having informally agreed a lump sum figure with the plaintiff, will agree to convert part of the damages into a series of periodic payments. To fund the arrangement the insurer purchases an annuity from a life office. The payments are “structured” to meet the individual's needs and are free of tax in the plaintiffs hands. This is because the Revenue have accepted that they may be considered instalments of capital rather than income. In return for making this arrangement the insurer will bargain for a discount on the conventional lump sum figure. Although the first structure was put in place as long ago as 1981, they were not used in other than a few isolated cases until 1991. Now there are almost two hundred of them, and the annuity market, worth £30 million last year, is expected to grow rapidly. Their increasing use constitutes the most radical reform of our damages system effected in recent years.
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Kuzmina, Elena, and Andrei Ianin. "Modelling the profitability of reverse mortgage loans with life-long annuity payments." E3S Web of Conferences 203 (2020): 05020. http://dx.doi.org/10.1051/e3sconf/202020305020.
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The article deals with the economic mechanism of reverse mortgage as a loan product aimed at raising the welfare of senior citizens who own real estate, for organic farming and soil management. The article discusses the financial and historical aspects of the implementation of the reverse mortgage instrument, as well as defines a potential of implementation of this instrument in Russia. Having identified the potential, the authors also mentioned the factors that could prevent Russian banks from adopting this mechanism. The article addresses one specific factor – absence of adequate instruments to predict and evaluate financial performance of reverse mortgage instruments. Consequently, the aim of the current paper is to create a mathematical model of reverse mortgage loan; specifically, current paper focuses on reverse mortgage loan with life-long annuity payments. In order to derive such model, the authors adopted a perspective, according to which loans are perceived as specific products present on an open market. As a result, we have obtained a model that allows lenders to calculate expected gains from reverse mortgage loans with respect to unknown loan span and varying demand, thus diminishing the uncertainty about reverse mortgage properties and making this financial product more attractive and for agricultural planning and economic, agricultural logistics and transport, et al.
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Grosenbaugh, Lewis R. "Some New Equations and Constraints Useful in Analysis of Serial Repayment or Investment." Northern Journal of Applied Forestry 11, no. 2 (June 1, 1994): 58–62. http://dx.doi.org/10.1093/njaf/11.2.58.
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Abstract Initial value of the sum of a series of equal payments of R dollars at equal time intervals is V and terminal value is W. It is desired to find total number (N) of such payments and rate of effective periodic compound interest (P) implied by R, V, W under a specified protocol relating start and end of a contract (e.g., a debt repayment, annuity, or lease) to times of first and last payments. Two new equations are derived, completing the set of five needed to solve for any unknown, given any three of the remaining variables and an appropriate protocol. A list of implied constraints has been provided to facilitate early detection of invalid values assigned to trios of "known" variables and to help ensure that required guesses at value of unknowns do not violate implied limits. Erroneous and correct relationships between periodic rate (P) and annual percentage rate (APR) are compared. North. J. Appl. For. 11(2):58-62.
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Johannsen, R. "Remarks on the obligation of the liability insurer in cases of annuity payments." Insurance: Mathematics and Economics 12, no. 1 (February 1993): 92–93. http://dx.doi.org/10.1016/0167-6687(93)91097-e.
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Nadilia, Nindita, Nina Fitriyati, and Irma Fauziah. "The Constant Annual Premium and Benefit Reserve for Four Participants in Joint Life Insurance." InPrime: Indonesian Journal of Pure and Applied Mathematics 2, no. 2 (June 25, 2020): 97–104. http://dx.doi.org/10.15408/inprime.v2i2.14780.
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AbstractThis research discusses the derivation of formula to calculate the constant annual premiums and the benefit reserves for joint insurance consisting of four people. We combine pure endowment insurance, lifetime insurance, and n-year term insurance. Assumed that the benefits are set at the beginning of the insurance contract, the benefit reserves are calculated using the prospective method, and the premium payment stops if one of those four participants dies. If all participants live until the end of the contract, the benefits are paid at once but if one of the participants dies, the benefits paid at the end of the contract in the form of a lifetime annuity. The formula to calculate the benefit reserves is divided into four cases i.e. the benefit reserves if one of four participants dies, the benefit reserves if two of four participants die, the benefit reserve if three of four participants die, and the benefit reserves if all participants are still alive until the end of the contract. Besides, we also present simulation to calculate the constant annual premium for four participants consist of a father (50 years old), a mother (45 years old), a son (20 years old), and a daughter (15 years old). From the simulation, we conclude that as the length of the insurance contract increases, the premium tends to decrease. The benefit reserve calculation does not have a certain tendency. It generally increases during the insurance period (the premium is still paid) and then decreases thereafter. This is valid for all cases mentioned above.Keywords: n-year term insurance; prospective method; pure endowment insurance. AbstrakPenelitian ini membahas mengenai penurunan rumus untuk menghitung premi tahunan konstan dan cadangan benefit untuk asuransi gabungan yang terdiri dari empat orang. Jenis asuransi yang digunakan adalah kombinasi antara asuransi endowment murni, asuransi seumur hidup dan asuransi berjangka n-tahun. Diasumsikan bahwa benefit ditetapkan di awal kontrak asuransi dan pembayaran premi berhenti jika salah seorang dari keempat peserta meninggal dunia. Jika seluruh peserta hidup sampai dengan akhir kontrak maka benefit dibayarkan secara sekaligus, namun jika salah satu dari peserta telah meninggal dunia maka benefit yang dibayarkan pada akhir tahun kontrak dalam bentuk anuitas seumur hidup. Rumus yang diperoleh untuk menghitung cadangan benefit dibagi menjadi empat kasus yaitu cadangan benefit jika satu orang meninggal dan tiga orang lainnya hidup, cadangan benefit jika dua orang meninggal dan dua orang lainnya hidup, cadangan benefit jika tiga orang meninggal dan satu orang lainnya hidup, dan cadangan benefit jika semua peserta tetap hidup sampai akhir masa kontrak. Pada akhir penelitian, disajikan simulasi perhitungan premi tahunan konstan untuk empat peserta yang terdiri dari ayah (berusia 50 tahun), ibu (45 tahun), anak laki-laki (20 tahun), dan anak perempuan (15 tahun). Dari simulasi diperoleh bahwa semakin lama kontrak asuransi maka premi yang dibayakan cenderung semakin kecil. Perhitungan cadangan benefit tidak memiliki kecenderungan tertentu, namun pada umumnya meningkat selama masa asuransi berlangsung (pembayaran premi masih dilakukan) kemudian menurun setelahnya. Hal ini berlaku untuk seluruh kasus yang telah dibahas pada perhitungan rumus cadangan premi.Kata kunci: asuransi berjangka n-tahun; metode prospektif; asuransi endowment murni.
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THORBURN, CRAIG, ROBERTO ROCHA, and MARCO MORALES. "An analysis of money's worth ratios in Chile." Journal of Pension Economics and Finance 6, no. 3 (October 29, 2007): 287–312. http://dx.doi.org/10.1017/s1474747207003150.
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AbstractEmpirical analyses of annuities markets have been limited to a few developed countries and restricted by data limitations. Chile provides excellent conditions for research on annuities due to the depth of its market and the availability of data. The paper utilizes an extensive dataset on individual annuities to examine econometrically a measure of market performance – money's worth ratios (MWRs), or the ratio of the expected present value of annuity payments to the premium. The results show that annuitants in Chile have generally got a good deal for their premiums, as indicated by MWRs higher than one and also higher than those estimated for other countries. The difference between Chile and other countries is striking considering that annuities in Chile are indexed to prices. The wide range of indexed instruments in Chile, allowing providers to hedge their risks while extracting higher returns, helps explain the difference. The high degree of market competition has also contributed to this outcome. Efforts to improve market transparency through a new electronic quotation system have decreased the dispersion of MWRs. Finally, MWRs tend to decrease for contracts with longer durations, reflecting pricing for higher longevity and reinvestment risks. These results are consistent with separate research on the annuity rate, and indicate the need to ensure competition and market transparency, as well as to develop appropriate financial instruments for providers in order to ensure good outcomes for annuitants.
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Prasma Putra, ALdo Hermanda, and Akhmad Darmawan. "The Effect Of Insider Ownership, Dept Policy, Divident Payment Policy And Profitability On Stock Return (On The Manufacture Companies Registered in BEI)." Media Ekonomi 14, no. 2 (July 1, 2014): 49. http://dx.doi.org/10.30595/medek.v14i2.1160.
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This research aimed to find out the effect of insider ownership. debt policy, dividen payment policy and profitability partially and simulianeusly on stock return on the manufacture companies registered in BEI in 2010-2012
The data of this research was from audited financial report and annualy financial report gained from www.idx.co.id. The sample of this research was the manufacture companies registered in BEI in 2010-2012. The analysis technicue was by double linier regression.
The result of this research showed that simultaneusly, insider ownership, debt policy and dividend payment policy efectted significantly on stock return. Partially, only 1 independent variable that was profitability that effected positively significant to the stock return, while insider ownership had a negative significant effect, and partially, debt policy and dividen payment did not affect on stock return.
the researcher suggested that the investor of insider ownership variable and profitability could be applied to explain stock return of the maufacture companies then this ratio could be the investor's consideration in analyzing the company's performance that influance the stock return rise
Keyword : Insider Ownership, Dept Policy, Dividen Payment Policy, Prifitability Stock Return
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Joebaedi, Khafsah, Kankan Parmikanti, Agus Supriatna, Fauzi Akhmad, Badrulfalah Badrulfalah, and Nendi Suhendi Syafei. "Interest Rate in Pension Plan Premium Calculation." Eksakta : Berkala Ilmiah Bidang MIPA 21, no. 1 (April 30, 2020): 40–45. http://dx.doi.org/10.24036/eksakta/vol21-iss1/218.
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This research aims to analyze the relationship between the interest rate relationship is inversely proportional to the amount of the premium on the pension plan. The method used is to measure several variables, among others FSL (Future Service Liability), PVFSAL (Present Value Future Salary), PR (Pension Rate) and Premiums. Calculation, life annuity uses actuarial assumptions, one of which is the interest rate assumption, if the assumptions used are not in accordance with the actual conditions, then what happens is excessive payments or deficient payments. The interest rate has an influence in the process of calculating the defined benefit pension plan premium. Using the assumption of different interest rates (11%, 12 % and 13%), it is found that the interest rate relationship is inversely proportional to the amount of the premium. The results of this study are FSL, PVFSAL, PR and Premiums for the interest of 11%, 12% and 13% (participants aged 25 years) as follows 720,187.97; 554,000,24; 430,570.07 (FSL in Rupiah); 27,155,187.70; 24,922,770,59; 23,002,699.40 (PVFSAL in Rupiah); 2.6521; 2.2229; 1.8718 (PR in%) and 55,535.38; 46,546.85; 39,196.00 (Premiums in Rupiah)The higher the interest rate, the smaller the pension premium and vice versa.
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Jørgensen, Jesper, and Panos Kefalas. "Annuity payments can increase patient access to innovative cell and gene therapies under England’s net budget impact test." Journal of Market Access & Health Policy 5, no. 1 (January 2017): 1355203. http://dx.doi.org/10.1080/20016689.2017.1355203.
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