Implications of Actuarial Guideline 43 for variable annuity product design and risk management

Companies have now had several financial reporting cycles since the establishment of Actuarial Guideline XLIII (AG 43) in December 2009. Milliman's survey of the AG 43 implementation process for U.S. variable annuity companies shows a range of different implementation practices under the new statutory reserving requirement. This paper focuses largely on the product design and risk management implications of AG 43.