FIA Market Briefing

What this means for FIA rates: The 10-year Treasury rose +0.19% this week to 4.65%, widening insurer bond income and putting upward pressure on FIA cap rates and participation rates. The yield curve is normal (+108 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 4.46% to 4.65% over the week, and VIX went from 17.99 to 17.91. The yield curve is positive (108bps 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.
• →Equities are flat — a natural moment to discuss how FIAs offer a more predictable path for retirement income vs. direct market exposure.
• →Index performance is diverging (Russell 2000 down 4.3%, NASDAQ down 1.54%) — worth discussing which FIA index crediting strategy best fits each client's outlook.
• →With the 10-year at 4.65%, fixed-rate alternatives look competitive. Be ready to explain how FIA participation in market upside differentiates them from straight fixed annuities.