Annuity Business: Shareholder Returns and Profitability
Document ID: 2007-751 (previously Report 79)
Published on: 30th September 2007
Ownership of annuity business in the UK is undergoing a period of significant re-structuring. This report discusses the nature of shareholders’ participation in annuity business and the expected level, behaviour and de-composition of returns on shareholder capital. It also discusses the economic profitability of this business – considering shareholder returns after adjusting for the market risk exposures and costs of capital that typically come with the business. The Barrie & Hibbert Annuity Model is used throughout the report in the production of the modelling output and analysis.
