AIG Released From Sifi Oversight

With that news only Prudential remains under the “the too big to fail” extended financial oversight. We think this is appropriate especially for PRT. Prudential recently announced International Paper’s $1.3B PRT transaction for retirees with benefits less than 450/mo. We welcome the extra oversight beyond the New Jersey Insurance Commission’s work in light of the huge current trend toward offloading retiree liability.

We believe that the following rates applied to the mortality scale MP-2016 will give you a pretty good indication of the price of a group annuity contract. Use the smaller rate for small contracts