The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 199 bps as of the end of December 2021, down 2 basis points from the previous month, driven by an increase in long-term interest rates. The Index Methodology provides additional details about the assumptions and methodologies underlying the Milliman Hedge Cost Index.
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Hedge Cost Index December 2021
Milliman reports 2 basis points decrease in Hedge Cost Index for VA guarantees in December.