FIA Market Briefing

What this means for FIA rates: The 10-year Treasury rose +0.06% this week to 4.51%, widening insurer bond income and putting upward pressure on FIA cap rates and participation rates. The yield curve is normal (+82 bps), a healthy sign for insurer long-term portfolio returns.

Rate improvement likely. Yields are rising while options costs remain contained — the best combination for FIA crediting rates. The 10-year moved from 4.45% to 4.51% over the week, and VIX went from 18.63 to 16.50. The yield curve is positive (82bps spread) — a healthy sign for insurer portfolio returns. If you're seeing competitive quotes, it's a good time to lock in. Insurers have room to improve caps and participation rates.

• →Yields are rising — good time to discuss locking in a new FIA while crediting rates are improving.
• →Markets are up — the S&P gained 1.6% this week. Remind clients that FIAs let them participate in gains like these while protecting their principal from downturns.
• →With the 10-year at 4.51%, fixed-rate alternatives look competitive. Be ready to explain how FIA participation in market upside differentiates them from straight fixed annuities.