Income Value is a standard methodology used to compute the market valuation of an annuitized asset and was collectively defined by an industry committee in 2012 representing insurance carriers, distribution, and service providers. This value is meant to reflect a true market representation of the benefits held in a guaranteed income contract and is different than statutory reserve value, commutation value, or premium value. It can be used for internal reporting to help provide a full representation of assets under management for a client or for external reporting to assist with retirement planning or fee based advisory practices.
The Income Annuity Yield Curve contains a set of discount rates used by insurance carriers to calculate the market value of an annuitized asset (Income Value). Different than the U.S. Treasury Curve, it is meant to reflect the actual crediting rates used by a representative group of insurance carriers in support of guaranteed income in the U.S. market. CANNEX is a supplier of the Income Annuity Yield Curve to the market in support of income valuation.