Defined terms for the annuity market and lifetime income landscape.
Affiliated reinsurance is reinsurance in which the ceding carrier and the reinsurer are part of the same corporate group, so that risk and assets transferred through the treaty move between affiliated entities within a single holding structure.
Alternative asset concentration is the share of an insurance carrier's general account allocated to assets outside the traditional public investment-grade fixed income mix — such as private credit, collateralized loan obligations, and structured credit.
Asset-liability management is the discipline by which an insurance carrier structures the assets in its general account to match the cash-flow timing, duration, and behavior of the long-duration income obligations it owes to annuity contract owners.
Authorized control level is the regulatory intervention threshold under the US risk-based capital framework at which the state insurance commissioner is authorized to take control of an insurance carrier, triggered when the carrier's risk-based capital ratio falls below one hundred percent.
Capital adequacy is the condition that an insurance carrier holds capital sufficient to absorb adverse experience beyond what reserves cover and continue paying claims under foreseeable stress, assessed against a regulatory standard that scales required capital to the risks the carrier bears.
