The expected hedge cost for a hypothetical GLWB block (see Index Methodology) is estimated to be 190 bps as of the end of January 2022, down 9 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 January 2022
Milliman reports 9 basis points decrease in Hedge Cost Index for VA guarantees in January.