Types of Equity Release Products
|
|
- Alan Berry
- 8 years ago
- Views:
Transcription
1 Equity Release Assumption Setting Gina Craske Colin Wilson Types of Equity Release Products Reverse Mortgage/Home Income Provider lends home owner cash which must be repaid with rolled up interest on death or move to long term care, cash may be taken all up front or in stages Reversions Provider buys a share/all of the home owner s property, who lives in the property rent free until they die or move to long term care. The price paid reflects the time till the provider expects to get their share of the house. Can be sold with back to back annuities. Shared Appreciation Home owner gives up the right to some of the capital gain on the property in return for paying reduced or no interest on that part of the borrowings. Reverse Mortgages Loan Types Fixed / variable Lump sum / income / redraws Low maximum LTV s Age dependent: No Negative Equity Guarantees Repayment on death or move to care is not higher than the value of the property value. Housing Maintenance Regular valuations Other Obligations Insurance, Rates, Prior approval for renovations 1
2 Risks to the provider (reverse mortgages) House price inflation (can be exasperated by longevity) Movements in interest rates Higher mortality/move to long term care than expected Reputational risk Individual house price volatility Lack of data Lapses/remortgages and the correlation with interest rates Elements in the basis HPI rates Interest Rates Mortality Move to long term care Other lapses/surrenders Expenses Setting HPI Assumptions 2
3 Data Issues Problems of index construction Transactions / standardised Limited data Single 30 year history for regional data Insufficient granularity For equity release, may need assumption for individual house volatility, not index Lack of (prospective) model consensus Climate change? Population growth? Halifax Indices 1000 H alifax House P rice Indices (All houses, All buyers, S easonally adjusted) NORTH NORTH W EST YORKS. & HUMB. E. MIDLANDS W. MIDLANDS EAST ANGLIA SOUTH W EST GR. LONDON SOUTH EAST WALES Price Index (log scale) SCOTLAND UK N. IRELAND Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Quarterly Log Changes NORTH YORKS. & HUMB. NORTH WEST E. MIDLDS W. MIDLDS EAST ANGLIA SOUTH WEST SOUTH EAST GR. LONDON WALES SCOT. N. IRELAND UK Mean S.d Ann'd mean Ann'd s.d Autocorrel s for quarterly log price changes Regression of quarterly log price changes on national index β α σ
4 Correlations of Quarterly Changes YORKS. & NORTH E. W. EAST SOUTH SOUTH NORTH HUMB. WEST MIDLDS MIDLDS ANGLIA WEST EAST GR. LON WALES SCOT. N. IRE YORKS. & HUMB NORTH WEST E. MIDLANDS W. MIDLANDS EAST ANGLIA SOUTH WEST SOUTH EAST GR. LONDON WALES SCOTLAND N. IRELAND UK (Overlapping) 5 Year Log Changes NORTH YORKS. & HUMB. NORTH WEST E. MIDLDS W. MIDLDS EAST ANGLIA SOUTH WEST SOUTH EAST GR. LONDON WALES SCOT. N. IRELAND UK Mean S.d Ann'd mean Ann'd s.d s for log price changes Positive autocorrelation leads to higher annualised standard deviations Model Output Random Walk Y %Growth Average
5 Model Output Mean Reversion Y %Growth Average Questionnaire Questionnaire results Just under 30 providers were contacted Around 15 responses Only 4 respondents filled the questionnaire in Others either commercially sensitive don t do any modelling 5
6 Mortality/LTC Mortality tables varied (PPM, PMA, PML, IML) Mortality all 100% Improvements mainly 100% mc, 1 used 92 basis Little use of selection Large variation in LTC (2% mortality to 50%) All LTC assumptions age dependent Lapses around 1%2% where used 1 company considered correlation with interest rates None used own data, some use of working paper and rating tables Methodology Decrements deterministic 1 company used stochastic interest rates 2 companies modelled HPI deterministically and 2 stochastically (1 closed form) 2 companies hedged out the interest rate 1 company uses the assets to back annuities Example Sensitivities 6
7 Case Assumptions Male, age 65, House Value 250k, LTV 23% ( 57.5k) Mortality: PXA92, CMI MC Move to LTC: 0%, 10%, 20%, 30%, 40% by duration Lapses, expenses: zero margin: 1.11% Interest Rates, HPI: stochastic, calibrated to current economic conditions at 30 June ,000 scenarios Sensitivities Applied Mortality: base rates +/30% HPI: 120% HPI volatility (12% to 14.4%) LTV 40% + HPI 20% Lapse rates: introduce interest sensitive lapse rates: Results Distribution 8% 7% 6% 5% 4% 3% 2% 1% 0% 47,000 39,700 32,400 25,100 17,800 10,500 3,200 4,100 11,400 18,700 26,000 33,300 40,600 47,900 55,200 62,500 69,800 77,100 84,400 91,700 99,000 7
8 Mortality Sensitivity 80,000 Mortality +30% Mortality 30% 40,000 20,000 20,000 40,000 Increase HPI Volatility HPI Losses 80,000 HPI Volatility (+20%) 40,000 20,000 20,000 40,000 Increase HPI Volatility 80,000 HPI Volatility (+20%) 40,000 20,000 20,000 40,000 8
9 Increase HPI Volatility HPI Losses 100,000 HPI Volatility (+20%) 80,000 40,000 20,000 20,000 40,000 = 40%LTV, HPI 20% 125, ,000 HPI Volatility (+20%) 85,000 65,000 45,000 25,000 5,000 15,000 35,000 55,000 75,000 Interest Sensitive Lapse Rates 14% Interest Sensitive Lapse Rates 12% 10% 8% 6% 4% 2% 0% 47,000 43,350 39,700 36,050 32,400 28,750 25,100 21,450 17,800 14,150 10,500 6,850 3, ,100 7,750 11,400 15,050 18,700 22,350 26,000 29,650 33,300 36,950 40,600 44,250 47,900 51,550 55,200 58,850 62,500 66,150 69,800 73,450 77,100 80,750 84,400 88,050 91,700 95,350 99,000 9
10 Results Impact of Swap 12% 10% 8% 6% 4% 2% 0% 45,000 41,250 37,500 33,750 30,000 26,250 22,500 18,750 15,000 11,250 7,500 3,750 3,750 7,500 11,250 15,000 18,750 22,500 26,250 30,000 33,750 37,500 41,250 45,000 48,750 52,500 56,250 63,750 67,500 71,250 75,000 78,750 Impact of HPI Sensitivity assuming Swap 80,000 + Swap + Swap + HPI Volatility (+20%) 40,000 20,000 20,000 40,000 = 40%LTV, HPI 20% (with swap) 125, ,000 + Swap + Swap + HPI Volatility (+20%) 85,000 65,000 45,000 25,000 5,000 15,000 35,000 55,000 75,000 10
11 = 40%LTV, HPI 20% (with swap, no HPI losses) 125, ,000 (no HPI loss) + Swap (no HPI loss) 85,000 65,000 45,000 25,000 5,000 15,000 35,000 55,000 75,000 Other Issues Accounting treatment of the asset Real world or market consistent Dividend yields Lack of market for pricing options Prevention of poor persistency and protection of profits Conclusions Hedging interest rate risk is effective but reduced by offs being different to expected Consider how to model HPI/interest rate correlation Sensitive to lapses/surrenders but no data, penalties key HPI really kicks in with higher LTV and when interest rates are hedged 11
Equity Release Working Party. Pricing & Risk Capital In the Equity Release Market 27 March 2008
Equity Release Working Party Pricing & Risk Capital In the Equity Release Market 27 March 2008 Who are we? Ged Hosty (Chair) - In Retirement Services Steve Groves - Partnership Assurance Colin Murray -
More informationTHE ARLA REVIEW & INDEX
THE ARLA REVIEW & INDEX for Residential Investment FOURTH Quarter 2014 Fourth Quarter 2014 Compared with three months ago, the average weighted rental return for houses is up from 5.0% to 5.1%, its second
More informationEquity Release Options and Guarantees Duncan Rawlinson
Equity Release Options and Guarantees Duncan Rawlinson Copyright 2006, the Tillinghast Business of Towers Perrin. All rights reserved. A licence to publish is granted to the Institute of Actuaries of Australia.
More informationValuation Report on Prudential Annuities Limited as at 31 December 2003. The investigation relates to 31 December 2003.
PRUDENTIAL ANNUITIES LIMITED Returns for the year ended 31 December 2003 SCHEDULE 4 Valuation Report on Prudential Annuities Limited as at 31 December 2003 1. Date of investigation The investigation relates
More informationDevelopments in the Equity Release Market
Developments in the Equity Release Market Brian Morrissey, KPMG 2003 Life Convention 9-11 November Hilton Birmingham Metropole Hotel Agenda Equity Release products in UK Regulation Risks Funding Financial
More informationCriteria Structured Finance RMBS: Criteria for Rating U.K. Reverse Mortgage-Backed Securities. Table Of Contents
August 8, 2002 Criteria Structured Finance RMBS: Criteria for Rating U.K. Reverse Mortgage-Backed Securities Primary Credit Analysts: Victoria Johnstone, London (44) 20-7176-3864; victoria_johnstone@standardandpoors.com
More informationCan Equity Release Mechanisms fund long term care costs? Desmond Le Grys
2001 Health Care Conference Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 1 Introduction 1.1 Scope This paper attempts to explain why equity release products have rarely been
More informationRoll-up Lifetime Mortgage Lump Sum Plus Lifetime Mortgage
Lifetime Mortgages Roll-up Lifetime Mortgage Lump Sum Plus Lifetime Mortgage Using the value in your home for a better retirement Just Retirement s Lifetime Mortgages Who are we? Just Retirement Limited
More informationALM in UK Life. DRAFT 12 January 2011 V1
ALM in UK Life WP & Annuity strategy t John Lister DRAFT 12 January 2011 V1 1 ALM in UK Life Summary Asset and Liability management is at the core of what we do This combined with the quality of our credit
More informationExtract from. Études et Dossiers No. 357. 6 th Geneva Association Health and Ageing Conference
International Association for the Study of Insurance Economics Études et Dossiers Extract from Études et Dossiers No. 357 6 th Geneva Association Health and Ageing Conference Health and Long-Term Care
More informationLifetime Mortgages. A good and appropriate investment for life companies with annuity liabilities? IFoA Equity Release Member Interest Group
Lifetime Mortgages A good and appropriate investment for life companies with annuity liabilities? IFoA Equity Release Member Interest Group Final May 2014 Contents 1. Executive summary... 3 2. Scope of
More informationLump Sum Lifetime Mortgage Product Summary
Lump Sum Lifetime Mortgage Product Summary This document is intended to provide you with an introduction to our Lump Sum Lifetime Mortgage. Aims The lump sum lifetime mortgage provides you with a cash
More informationCommissioned by. Written by. Supported by
Use of Housing Equity for Beginners A self training module Commissioned by Written by Supported by About this training module This self training module is for people who want to understand the basic ideas
More informationReverse Mortgages A Source of Funds for Retirement?
Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a
More informationFIRST-TIME BUYERS ALMOST 10% BETTER OFF BUYING THAN RENTING
NOT FOR BROADCAST OR PUBLICATION BEFORE 00.01 HRS ON SATURDAY 14 FEBRUARY 2015 FIRST-TIME BUYERS ALMOST 10% BETTER OFF BUYING THAN RENTING The Halifax Buying vs. Renting Review tracks the costs of buying
More informationAsset/liability Management for Universal Life. Grant Paulsen Rimcon Inc. November 15, 2001
Asset/liability Management for Universal Life Grant Paulsen Rimcon Inc. November 15, 2001 Step 1: Split the product in two Premiums Reinsurance Premiums Benefits Policyholder fund Risk charges Expense
More informationReverse Mortgages Risks and Costs of the NNEG
Reverse Mortgages Risks and Costs of the NNEG Duncan Rawlinson Copyright 2006, the Tillinghast Business of Towers Perrin. All rights reserved. A licence to publish is granted to the Institute of Actuaries
More informationWelcome to. OneFamily
OneFamily Lifetime Mortgages 1 Welcome to OneFamily Welcome to our OneFamily Lifetime Mortgages. This brochure acts as an easyto-digest introduction to lifetime mortgages and provides you with a summary
More informationPresenter: Sharon S. Yang National Central University, Taiwan
Pricing Non-Recourse Provisions and Mortgage Insurance for Joint-Life Reverse Mortgages Considering Mortality Dependence: a Copula Approach Presenter: Sharon S. Yang National Central University, Taiwan
More informationFeatured article: Evaluating the Cost of Longevity in Variable Annuity Living Benefits
Featured article: Evaluating the Cost of Longevity in Variable Annuity Living Benefits By Stuart Silverman and Dan Theodore This is a follow-up to a previous article Considering the Cost of Longevity Volatility
More informationPractical Applications of Stochastic Modeling for Disability Insurance
Practical Applications of Stochastic Modeling for Disability Insurance Society of Actuaries Session 8, Spring Health Meeting Seattle, WA, June 007 Practical Applications of Stochastic Modeling for Disability
More informationCouncil of Mortgage Lenders Equity release leaflet unlocking the value of your home
Council of Mortgage Lenders Equity release leaflet unlocking the value of your home What is equity release? Equity is the difference between any mortgage you may have and the value of your home. Equity
More informationCAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985
CAVENDISH Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 EQUITY RELEASE The Essential Guide INDEX Welcome to Cavendish Equity Release 3 How can Equity Release be used? 4 Why is specialist advice
More informationEquity Unlock Loan for Seniors Fact Sheet
Equity Unlock Loan for Seniors Fact Sheet Description Equity Unlock Loan for Seniors is a flexible financing solution for people aged 65 and over. If your clients own their own home, they may be able to
More informationTHE CHALLENGE OF LOWER
Recent interest rates have declined to levels not seen in many years. Although the downward trend has reversed, low interest rates have already had a major impact on the life insurance industry. INTEREST
More informationWhat alternative investments are of interest to life companies?
Life Conference 2011 Scott Robertson and Niall Clifford, KPMG LLP What alternative investments are of interest to life companies? 21 November 2011 Contents 1. What alternative assets have low correlation
More informationCase Study Modeling Longevity Risk for Solvency II
Case Study Modeling Longevity Risk for Solvency II September 8, 2012 Longevity 8 Conference Waterloo, Ontario Presented by Stuart Silverman Principal & Consulting Actuary Background SOLVENCY II New Minimum
More informationPractice Education Course Individual Life and Annuities Exam June 2011 TABLE OF CONTENTS
Practice Education Course Individual Life and Annuities Exam June 2011 TABLE OF CONTENTS THIS EXAM CONSISTS OF SEVEN (7) WRITTEN ANSWER QUESTIONS WORTH 51 POINTS AND EIGHT (8) MULTIPLE CHOICE QUESTIONS
More informationEmbedded Value Report
Embedded Value Report 2012 ACHMEA EMBEDDED VALUE REPORT 2012 Contents Management summary 3 Introduction 4 Embedded Value Results 5 Value Added by New Business 6 Analysis of Change 7 Sensitivities 9 Impact
More informationUnderstanding mortgages
This information is an extract from the booklet Housing costs, which is part of our Financial guidance series. You may find the full booklet helpful. We can send you a free copy see page 7. Contents What
More informationIntroduction to Real Estate Investment Appraisal
Introduction to Real Estate Investment Appraisal Maths of Finance Present and Future Values Pat McAllister INVESTMENT APPRAISAL: INTEREST Interest is a reward or rent paid to a lender or investor who has
More informationGuidance for the Development of a Models-Based Solvency Framework for Canadian Life Insurance Companies
Guidance for the Development of a Models-Based Solvency Framework for Canadian Life Insurance Companies January 2010 Background The MCCSR Advisory Committee was established to develop proposals for a new
More informationMarket Monitor HALF YEAR 2015 UK EQUITY RELEASE
UK EQUITY RELEASE Market Monitor HALF YEAR 2015 EMBARGOED UNTIL 00:01 15TH JULY 2015 Key Retirement, Baines House, 4 Midgery Court, Fulwood, Preston PR2 9ZH All images contained within this report can
More informationLife Settlements. Southeastern Actuaries Conference. David J. Weinsier. November 20, 2008. 2008 Towers Perrin
Life Settlements Southeastern Actuaries Conference David J. Weinsier November 20, 2008 2008 Towers Perrin Agenda Introduction to the secondary market Valuing policies Impact on the life insurance industry
More informationLump Sum Lifetime Mortgage Terms and Conditions. Version 1
Lump Sum Lifetime Mortgage Terms and Conditions Version 1 INTRODUCTION Thank you for choosing Hodge Lifetime. We hope that your lifetime mortgage makes a positive difference during your retirement. This
More informationWhat is a Financial Broker?
& Guidance Contents What is a mortgage? 02 How do I start the process of obtaining a mortgage? 03 Loan to Value (LTV) 06 What is a Financial Broker? 06 Why would I need to use a Financial Broker? 07 Terms
More informationWHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?
WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination
More informationEquity Release. A guide to our Lifetime Mortgage products
Equity Release A guide to our Lifetime Mortgage products Introducing Retirement Advantage Previously known as MGM Advantage and Stonehaven, we are a well-established company that can trace its roots back
More informationThe House and Retirement Wealth Decumulation
The House and Retirement Wealth Decumulation Anthony Webb Ph.D Center for Retirement Research at Boston College Conference on the Optimal Retirement Withdrawal Strategy NYU Stern School of Business, New
More informationReverse Mortgage. by Jeffrey D. Smith
There are finance companies that are offering the "Reverse Mortgage" to seniors (at least age 62). Seniors with a substantial amount of equity in their residence are targets of this aggressive predatory
More informationPURCHASE MORTGAGE. Mortgage loan types
PURCHASE MORTGAGE Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation
More informationAnalysis of Equity Release Products Robert Sorbello 2006 Actuarial Honours Thesis, Australian National University
Robert Sorbello 2006 Actuarial Honours Thesis, Australian National University Robert Sorbello REFERENCE NUMBER: RSORB Disclaimer The material in this report is copyright of Robert Sorbello. The views and
More informationEquity Release An easy to understand guide just for you
TRuE BEARing ChARTEREd e Right direction for Financial Advice Equity Release An easy to understand guide just for you True Bearing Chartered 2 Buckshaw Court, East Terrace Business Park Euxton Lane, Euxton,
More informationEuropean Union Green Paper on Mortgage Credit in the EU. Response from Prudential plc
1 General Comments European Union Green Paper on Mortgage Credit in the EU Response from Prudential plc 1.1 We welcome the opportunity to respond to the Commission s Green Paper on Mortgage Credit in the
More informationEquity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co.
Equity Release Guide 0800 612 5749 www.therightequityrelease.co.uk Helping you make the right decision nationwide service all lenders available personal visits 1 Welcome to The Right Equity Release Who
More informationFinancing your Home Purchase
Financing your Home Purchase page 1 Disclaimer This booklet is for information purposes only, and must not be relied on as a substitute for legal advice. page 2 Contents How Much Can You Afford? 1 Other
More informationManaging Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA
Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA About the Author Ray Meadows is the president of Berkeley Investment Advisors, a real estate brokerage and investment advisory firm. He
More informationExploring Home Equity Release Options for Retirees Opportunities for optimising Retirement Income.
Exploring Home Equity Release Options for Retirees Opportunities for optimising Retirement Income. Dr Ashton de Silva, Dr Stuart Thomas, Dr Farzad Alavi Fard and Dr Sarah Sinclair. The Challenge: An aging
More informationRELEASING CASH FROM YOUR HOME
RELEASING CASH FROM YOUR HOME As a recommended adviser for the Society of Later Life Advisers (SOLLA) we are frequently asked to advise on home income/equity release plans. These notes are designed to
More informationEquity Release Guide. www.seniorissues.co.uk
Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY
More informationMANAGING RISK IN LIFE INSURANCE: A STUDY OF CHAGING RISK FACTORS OVER THE LAST 10 YEARS IN TAIWAN AND DRAWING LESSONS FOR ALL
MANAGING RISK IN LIFE INSURANCE: A STUDY OF CHAGING RISK FACTORS OVER THE LAST 10 YEARS IN TAIWAN AND DRAWING LESSONS FOR ALL Simon Walpole & Ophelia Au Young Deloitte Actuarial & Insurance Solutions,
More informationA Guide to Equity Release in Retirement
A Guide to Equity Release in Retirement 1. Introduction For the retirement you deserve 2. What is Equity Release? 3. Equity Release Plans The options available to you 4. The Application Process 5. Questions
More informationINSTITUTE OF ACTUARIES OF INDIA
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 15 th November 2010 Subject CT1 Financial Mathematics Time allowed: Three Hours (15.00 18.00 Hrs) Total Marks: 100 INSTRUCTIONS TO THE CANDIDATES 1. Please
More informationRetirement Mortgage Product summary
Retirement Mortgage Product summary The Retirement Mortgage from Hodge Lifetime provides you with a flexible way to borrow money in retirement. A legal charge is secured on your home. AIMS The Retirement
More informationChadwick s. Equity Release
c Independent Chadwick s Financial Advisers Equity Release Contents Chadwick s IFA Page 4 Equity Release Page 5 Lifetime Mortgages Page 6 Home Reversion Schemes Page 7 Considerations Pages 8&9 Safe Guards
More informationChapter 6 Contents. Principles Used in Chapter 6 Principle 1: Money Has a Time Value.
Chapter 6 The Time Value of Money: Annuities and Other Topics Chapter 6 Contents Learning Objectives 1. Distinguish between an ordinary annuity and an annuity due, and calculate present and future values
More informationEquity release using your home to get a cash sum
Equity release using your home to get a cash sum for independent information About us We are an independent watchdog set up by the Government to: regulate firms that provide financial services; and help
More informationFlexible access to short-term finance. Precisely when you need it. Rathbones secured lending facility.
Flexible access to short-term finance. Precisely when you need it. Rathbones secured lending facility. Flexible lending. As a client of Rathbones, there may be occasions when you need to access short to
More informationActuary s Guide to Reporting on Insurers of Persons Policy Liabilities. Senior Direction, Supervision of Insurers and Control of Right to Practice
Actuary s Guide to Reporting on Insurers of Persons Policy Liabilities Senior Direction, Supervision of Insurers and Control of Right to Practice September 2015 Legal deposit - Bibliothèque et Archives
More informationD1.03: MORTGAGE REPAYMENT OVERVIEW
D1.03: MORTGAGE REPAYMENT OVERVIEW SYLLABUS Repayment mortgages Repayment profile Interest only mortgages Full and low cost endowment mortgages Unit-linked endowment mortgages ISA mortgages Pension mortgages
More informationOur Home Reversion Plan. Enjoy your retirement by unlocking the value of your home
Our Home Reversion Plan Enjoy your retirement by unlocking the value of your home I can now have the garden I ve always wanted. 1 Bridgewater Equity Release Limited the Home Reversion Plan experts Bridgewater
More informationEnhance Your Financial Security
Enhance Your Financial Security With a Home Equity Conversion Mortgage Many homeowners across the nation have chosen a Home Equity Conversion Mortgage (HECM) to help them meet financial and personal goals.
More informationA Study on Pricing of the Reverse Mortgage with an Embedded Redeemable Option An analysis based on China s market
A Study on Pricing of the Reverse Mortgage with an Embedded Redeemable Option An analysis based on China s market Chen Bingzheng, Deng Yinglu, Qin Peng CCIRM, Tsinghua Univ. Introduction Reverse mortgage:
More informationThe Help to Buy Equity Loan Scheme What you need to know before you go ahead
Page 1 of 6 The Help to Buy Equity Loan Scheme What you need to know before you go ahead What is the Help to Buy Equity Loan scheme? The Help to Buy Equity Loan scheme is a Government backed programme
More informationVariable Annuity Living Benefits
Variable Annuity Living Benefits Darryl Wagner, Deloitte Consulting Agenda Types of Living Benefits Introduction to FAS133 Definition of a Derivative Identifying Embedded Derivatives Valuing Contracts
More informationFinancial Engineering g and Actuarial Science In the Life Insurance Industry
Financial Engineering g and Actuarial Science In the Life Insurance Industry Presentation at USC October 31, 2013 Frank Zhang, CFA, FRM, FSA, MSCF, PRM Vice President, Risk Management Pacific Life Insurance
More informationUse your home to your advantage. A guide to equity release
Use your home to your advantage A guide to equity release 2 A guide to equity release Introducing Retirement Advantage Previously known as MGM Advantage and Stonehaven, we are a wellestablished company
More informationManaging Interest Rate Exposure
Managing Interest Rate Exposure Global Markets Contents Products to manage Interest Rate Exposure...1 Interest Rate Swap Product Overview...2 Interest Rate Cap Product Overview...8 Interest Rate Collar
More informationStochastic Analysis of Long-Term Multiple-Decrement Contracts
Stochastic Analysis of Long-Term Multiple-Decrement Contracts Matthew Clark, FSA, MAAA, and Chad Runchey, FSA, MAAA Ernst & Young LLP Published in the July 2008 issue of the Actuarial Practice Forum Copyright
More informationFlexible Lifetime Mortgage Product Summary
Flexible Lifetime Mortgage Product Summary The Flexible Lifetime Mortgage provides you with an initial cash sum in the form of a mortgage loan. A legal charge is secured on your home. For as long as you
More informationFutures Price d,f $ 0.65 = (1.05) (1.04)
24 e. Currency Futures In a currency futures contract, you enter into a contract to buy a foreign currency at a price fixed today. To see how spot and futures currency prices are related, note that holding
More informationModule 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care. Posted 5/31/05
Module 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care Posted 5/31/05 Answers to Key Questions What LTC financing options are available other than insurance? What are the differences
More informationBest Practices in Asset Liability Management
Best Practices in Asset Liability Management Frank Wilary Principal Wilary Winn LLC September 22, 2014 1 Topics Covered Best practices related to ALM modeling Best practices related to managing the ALM
More informationVariable Annuities. Society of Actuaries in Ireland Evening Meeting September 17, 2008
Variable Annuities Society of Actuaries in Ireland Evening Meeting September 17, 2008 Variable Annuities Working Party Presented paper to Faculty and Institute in March 2008 Working Party members Colin
More informationUse of Actuarial Judgment in Setting Assumptions and Margins for Adverse Deviations
Educational Note Use of Actuarial Judgment in Setting Assumptions and Margins for Adverse Deviations Committee on Life Insurance Financial Reporting November 2006 Document 206147 Ce document est disponible
More informationReverse Mortgage Pricing and Risk Analysis Allowing for Idiosyncratic House Price Risk and Longevity Risk
1/17 Reverse Mortgage Pricing and Risk Analysis Allowing for Idiosyncratic House Price Risk and Longevity Risk Adam Wenqiang Shao, Katja Hanewald, Michael Sherris ARC Centre of Excellence in Population
More information1. This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act).
Prudential Standard LPS 110 Capital Adequacy Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital against the risks associated
More informationAre you or your parents thinking about taking out an Equity Release product?
Equity Release Are you or your parents thinking about taking out an Equity Release product? Why take out an equity release plan? So what is an Equity Release plan? Who can take out an Equity Release Scheme?
More informationHome Equity Release: An alternative product and its pricing
Home Equity Release: An alternative product and its pricing Prepared by Douglas Andrews and Jaideep Oberoi Presented to the Actuaries Institute ASTIN, AFIR/ERM and IACA Colloquia 23-27 August 2015 Sydney
More informationG e t S t a r t e d o n Y o u r f i n a n c e s
M o r t g a g e N e w s l e t t e r W e l c o m e To this newsletter, which covers some of the key issues of the moment that affect mortgages and mortgage related products, and sets out how it may help
More informationRisk Management and Payout Design of Reverse Mortgages
1 Risk Management and Payout Design of Reverse Mortgages Daniel Cho, Katja Hanewald and Michael Sherris School of Risk & Actuarial ARC Centre of Excellence in Population Ageing Research (CEPAR) University
More informationOptions Pricing. This is sometimes referred to as the intrinsic value of the option.
Options Pricing We will use the example of a call option in discussing the pricing issue. Later, we will turn our attention to the Put-Call Parity Relationship. I. Preliminary Material Recall the payoff
More informationEquity-based Insurance Guarantees Conference October 27-28, 2008. Pricing EAI Guarantees. Moderator Dr. K. (Ravi) Ravindran
Equity-based Insurance Guarantees Conference October 27-28, 2008 Pricing EAI Guarantees Noel Abkemeier, Eric Petersen Moderator Dr. K. (Ravi) Ravindran Equity Indexed Annuity Pricing Eric Petersen, F.S.A.
More informationBackground On Reverse Mortgages
Taking A Fresh Look At Reverse Mortgages Webinar Kitces.com Michael E. Kitces MSFS, MTAX, CFP, CLU, ChFC, RHU, REBC, CASL Partner. Director of Research, Pinnacle Advisory Group Publisher. The Kitces Report,
More informationCash Flow Analysis Multi-Family Building For Sale Boston, Massachusetts 02215
Property Report Cash Flow Analysis Presented by: Pantheon Property Group 665 Beacon Street, Suite #305 Boston, Massachusetts 02131 Office: Mobile: (830) 660-5265 Data Analysis Provided by Pantheon Property
More informationReverse Mortgage- Growing Market in India
Reverse Mortgage- Growing Market in India By Singhal, Saket & Jain, Amit Abstract With National Housing Bank coming up with the guidelines for Reverse Mortgage Products and some banks offering the product
More informationChapter 3: Property Wealth, Wealth in Great Britain 2010-12
Chapter 3: Property Wealth, Wealth in Great Britain 2010-12 Coverage: GB Date: 15 May 2014 Geographical Area: GB Theme: Economy Key Points Aggregate net property wealth for all private households in Great
More informationDisclosure of European Embedded Value (summary) as of March 31, 2012
May 25, 2012 SUMITOMO LIFE INSURANCE COMPANY Disclosure of European Embedded Value (summary) as of 2012 This is the summarized translation of the European Embedded Value ( EEV ) of Sumitomo Life Insurance
More informationNew Research: Reverse Mortgages, SPIAs and Retirement Income
New Research: Reverse Mortgages, SPIAs and Retirement Income April 14, 2015 by Joe Tomlinson Retirees need longevity protection and additional funds. Annuities and reverse mortgages can meet those needs.
More informationFirst Time Buyer Mortgage Information
First Time Buyer Mortgage Information If you re thinking about a Mortgage for your first home talk to us today A good time to talk to us? We re here to listen and help you whenever you need to talk to
More informationPricing and Securitization of Reverse Mortgage for Dependent Lives
Pricing and Securitization of Reverse Mortgage for Dependent Lives Sharon S. Yang National Central University Corresponding Author: Sharon S. Yang, Associate Professor, Department of Finance, National
More informationCanadian Life Insurance Company Asset/Liability Management Summary Report as at: 31-Jan-08 interest rates as of: 29-Feb-08 Run: 2-Apr-08 20:07 Book
Canadian Life Insurance Company Asset/Liability Management Summary Report as at: 31Jan08 interest rates as of: 29Feb08 Run: 2Apr08 20:07 Book Book Present Modified Effective Projected change in net present
More informationSOCIETY OF ACTUARIES FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS
SOCIETY OF ACTUARIES EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS This page indicates changes made to Study Note FM-09-05. April 28, 2014: Question and solutions 61 were added. January 14, 2014:
More informationCommunicating Investment Risk Working Party. 28 June 2010
Communicating Investment Risk Working Party 28 June 2010 Communicating Investment Risk Working Party Membership: - Maria McLaughlin - Colin Murray (chair) - Marie Phelan - Emily O Gara - Hendri Solomon
More informationWHAT IS LIFE INSURANCE?
UNDERSTANDING LIFE INSURANCE Presented by The Kansas Insurance Department WHAT IS LIFE INSURANCE? a. Insurance Contract issued by an Insurance Company. b. Premiums paid under the contract provide for a
More informationReverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good.
Reverse Mortgage Financial freedom to do the things you ve always wanted That s what we re here for. Here for good. Contents 2 The freedom of a Reverse Mortgage 3 Product overview 4 About Reverse Mortgages
More informationFINAL TERMS Final Terms dated 10 January 2011. Lloyds TSB Bank plc. Issue of 45,000,000 Series 2011-1 Fixed Rate Covered Bonds due 2031
IMPORTANT NOTICE NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR TO ANY PERSON OR ADDRESS IN THE U.S. IMPORTANT: You must read the following before continuing. The following applies to the final terms attached
More informationCustomer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need
Customer Guide to lifetime mortgages more 2 choose a range of lifetime mortgage plans to suit every need From one of the UK s largest retirement lending specialists Please speak to your adviser for further
More informationwww.theitjobboard.co.uk T: 020 7307 6300 The IT Job Board Salary Survey 2009
www.theitjobboard.co.uk T: 020 7307 6300 The IT Job Board Salary Survey 2009 Salary Survey 2009 The IT Job Board s 2009 salary survey has been created to assist IT professionals and hiring managers to
More information