Benchmarks & Indices
Income Valuation

The Income Annuity Yield Curve contains a set of discount rates used by insurance carriers to calculate the market value of an annuitized asset. 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.

In 2011, a standard methodology to compute market valuation of an income annuity was collectively defined by a group of firms across the financial industry. Referred to as “Income Value”, this valuation is defined as the actuarial present value of the remaining income benefit from an annuitized contract. 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.