Cap Rate Changes Coming from Global Atlantic

From Global Atlantic:

Important Information Regarding Cap and Illustrated Rate Changes

If you follow the markets, you already know there’s been significant volatility. As you may recall, market volatility affects our investment experience and increases hedging costs. As a result, Global Atlantic, like many carriers, must review its anticipated experience and adjust its cap rates to appropriately manage the business. We do this to ensure our continued financial strength that you and your clients have come to know and rely upon.

In light of the continued low, long-term interest rate environment and recent increases in hedging costs, we will be adjusting cap and illustrated rates on currently available IUL products and on inforce IUL products, effective February 1, 2022.

Important: Formal transition rules and other details are yet to be released by Global Atlantic. Based on a projected effective date of March 15th, funds should be received by Global Atlantic in advance of the March 10th sweep date to receive current caps.

Cap changes vary from 10 basis points to 150 base points depending on the crediting strategy.

Please click here to view the table for additional details and rates.