During the volatile months of September and October, the hedging programs developed to protect variable annuities (VAs) with guarantees were, based on an internal study, 93% effective, saving an estimated $40 billion in industry-wide assets for the insurance companies that write these products.

This report offers findings from this internal study, samples results for the industry at large, and considers what we might expect from hedging programs. The success of these programs during these difficult times is likely to result in increased use of hedging, and has broad implications both for insurers and for other companies that provide retirement security products.