Index
Milliman Hedge Cost Index April 2024
Milliman reports 14 basis points decrease in Hedge Cost Index for VA and RILA guarantees in April.
By Xiaohong Mo and Daren Lockwood
09 May 2024
As of the end of April 2024, the expected hedge cost is estimated to be 110 basis points (bps) for a hypothetical guaranteed lifetime withdrawal benefit (GLWB) on variable annuities (VAs) and 108 bps for registered index-linked annuities (RILAs), both down 14 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™ (MHCI).