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URL:  http://boards.fool.com/having-said-that-i-have-had-direct-talks-with-the-29800471.aspx

Subject:  Re: How to make your own annuity on the cheap Date:  1/24/2012  2:20 PM
Author:  brewer12345 Number:  69998 of 85644

Having said that, I have had direct talks with the trading desks, and reviewed the financials, at the 3 best performing IUL companies I'm aware of, and they are all getting 6.5% - 6.9% yields or better on new money, today.

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Insurers' portfolios are 75% bonds in a world where LQD has a sub 4% YTM. They are about 10% commercial mortgages where insurers are very happy to get 350BP over treasuries. Most of the rest of the invested assets for the industry are cash or low yielding investments like common equities. 6-handle yields for new money do not exist. Of course, if you can point me to some outside of insurance contracts, I would be very interested.
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