\n \u200b\u200b\u200b\u200b\u200b\u200b\u200bAt the Hubbis Wealth Planning & Structuring Forum – Singapore 2026, Luanna Teo, Vice President, Brand Development at Knighthead Annuity & Life Assurance Company, examined how fixed-rate annuity solutions can complement structured products, bonds, deposits and other income-focused investments.
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\nLuanna\u2019s presentation focused on the changing fixed income environment and the need for advisers to look beyond product categories when clients ask for income, protection or stability. Her argument was not that annuities should replace structured products or traditional fixed income instruments, but that they can provide another tool for clients seeking defined outcomes.
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\nThe central message was that many clients who ask for fixed income are really asking for certainty. In a market shaped by inflation shocks, rapid rate changes, geopolitical disruption and valuation shifts linked to AI, advisers need to understand whether the client\u2019s priority is capital preservation, dependable income, lower volatility, diversification, or retirement confidence.\n <\/p>\n
Key Takeaways<\/p>\n
\n\tFixed Income Conditions Have Changed: Luanna said traditional tools such as bonds, bond funds, ETFs, ladders and deposits remain useful, but the past five years have exposed limitations around volatility, reinvestment risk, scale and flexibility.
\n\tOutcomes Should Lead Product Selection: Clients asking for fixed income may be seeking capital preservation, predictable cash flow, lower portfolio volatility, diversification away from equities or greater confidence approaching retirement.
\n\tAnnuities Can Complement Structured Products: Luanna positioned fixed-rate and fixed-index annuities as additional portfolio tools, not as replacements for structured products or conventional fixed income.
\n\tGlobal Demand Is Rising: US retail annuity sales reached USD 461.3 billion last year, marking the fourth consecutive year of record sales, while first-quarter sales this year reached USD 104.6 billion.
\n\tKnighthead Has Seen Recent Momentum: Luanna said Knighthead recorded USD 2 billion in sales over the past eight months, with China, Japan and Taiwan among its strongest markets.
\n\tPrincipal Protection Is Central: Knighthead\u2019s annuity solutions are designed to provide guaranteed returns or income streams, depending on the product structure.
\n\tStructure And Financial Strength Matter: Luanna highlighted Knighthead\u2019s segregated master trust structure, independent custody and audit arrangements, AM Best A-minus rating, KBRA A rating, no leverage, asset-liability matching and shareholder equity buffer.
\n\tThree Product Types Address Different Needs: Knighthead offers multi-year guaranteed annuities, fixed-index annuities and single premium immediate annuities.
\n\tFlexibility Can Be Built In: Selected products include features such as penalty-free withdrawals, death benefits and beneficiary nomination, including for estate planning purposes.
\n\tGuaranteed Illustrations Were A Key Point: Luanna stressed that the figures shown in the policy examples were guaranteed, rather than non-guaranteed projections.
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Rethinking The Fixed Income Conversation<\/p>\n
Luanna began by acknowledging that structured products form a substantial part of many client portfolios, particularly among EAMs and IFAs. Her objective, she said, was not to argue against those instruments, but to broaden the toolkit available for clients whose real objective is stability.<\/p>\n
Traditional fixed income solutions remain familiar. Bond funds and ETFs offer diversification and professional management. Bond ladders can create predictable cash flows. Fixed deposits are simple and principal-protected. But recent market conditions have made the limitations more visible.<\/p>\n
Bond funds can be exposed to mark-to-market volatility. Bond ladders require scale and ongoing management. Deposits can provide comfort, but may limit flexibility when used too narrowly.<\/p>\n
For Luanna, this means advisers should begin with the client\u2019s desired outcome rather than the product label.<\/p>\n
\u201cThe more pertinent question is not, \u2018What fixed income product should you recommend to your client?\u2019\u201d she said. \u201cIt is, \u2018What outcome is my client trying to achieve?\u2019\u201d<\/p>\n
That distinction matters because the client may not be asking for bonds as such. They may be asking for dependable income, risk management, capital preservation or confidence around retirement.<\/p>\n
Why Annuities Are Gaining Attention<\/p>\n
Luanna said annuities have seen significant growth globally, especially in the US, where retail annuity sales reached USD 461.3 billion last year. She linked that growth to demographics, an ageing and asset-rich population, and rising demand for guaranteed lifetime income.<\/p>\n
Knighthead has seen similar momentum in international markets. Luanna said the company had recorded USD 2 billion in sales over the past eight months, led by markets including China, Japan and Taiwan.<\/p>\n
\u201cThese figures clearly indicate that clients are increasingly seeking certainty in an uncertain world,\u201d she said.<\/p>\n
At their core, annuities are contracts designed to provide guaranteed returns or guaranteed income streams, depending on how the product is structured. Luanna noted that Knighthead\u2019s annuities are principal-protected and can also support estate planning through beneficiary nomination, including American beneficiaries for non-American policy owners.<\/p>\n
Although annuities are often associated with conservative retirement planning, she said their relevance can extend further. They can also serve clients seeking to diversify income sources or add a guaranteed return component alongside bonds, deposits and structured products.<\/p>\n
The Knighthead Platform<\/p>\n
Luanna then introduced Knighthead Annuity & Life Assurance Company, established in 2014 in the Cayman Islands. The company serves international clients through fixed annuity products and also operates within the broader Knighthead Insurance Group, which includes international, US and reinsurance businesses.<\/p>\n
She placed emphasis on the platform supporting the products. Client assets are held through a segregated master trust structure administered by Ocorian Trust and custodied with Goldman Sachs Bank and J.P. Morgan. Luanna said policyholders are trust participants and that Knighthead does not directly hold client assets.<\/p>\n
She also highlighted the company\u2019s audited financial statements, AM Best A-minus financial strength rating, KBRA A rating, and conservative investment approach. Knighthead\u2019s portfolio includes more than 1,500 positions, is managed on an asset-liability matching basis, and does not permit leverage.<\/p>\n
The capital base was another point of emphasis. Luanna said Knighthead had crossed USD 8 billion in assets under management in March this year, including USD 7 billion from client premiums and USD 1 billion in shareholder equity.<\/p>\n
\u201cThe combination of segregated trust custody, independent audit, an A-minus AM Best rating, no leverage and a meaningful shareholder equity buffer is the foundation on which our product yields sit,\u201d she said.<\/p>\n
Product Types And Portfolio Role<\/p>\n
Knighthead offers three main annuity solutions.<\/p>\n
The first is multi-year guaranteed annuities, or MYGAs, which provide a fixed guaranteed rate over a selected term, typically three, five, seven or 10 years.<\/p>\n
The second is fixed-index annuities, which allow clients to participate in selected equity indices, such as the S&P 500, while protecting principal against market downturns.<\/p>\n
The third is single premium immediate annuities, which are designed primarily for retirement income planning. A client makes a lump sum investment and receives guaranteed income payments over a defined period or for life.<\/p>\n
Luanna used the Knighthead Safe Harbour product to show how this can work in practice. For cases of USD 250,000 and above, she cited fixed rates of 5.35% for three years, 5.75% for five years, 5.85% for seven years and 6% for 10 years. For fixed-index annuities, she cited S&P 500 caps of 10% for a five-year term and 10.25% for a seven-year term.<\/p>\n
Selected products also include features such as a 50% free withdrawal benefit and a 101% death benefit. Luanna said the products are available in multiple currencies, including US dollars, sterling, euros, Swiss francs, Canadian dollars, Singapore dollars and Japanese yen.<\/p>\n
Guaranteed Outcomes In Practice<\/p>\n
Luanna then discussed policy illustrations.<\/p>\n
In one example, a client invests USD 1 million and withdraws USD 50,000 annually over 10 years. Based on the illustration, the client receives around USD 1.13 million at the end of the term, with an average annualised interest rate of 6.32%.<\/p>\n
A second illustration involved a USD 1 million Navigator policy. This does not include the same free withdrawal or 101% death benefit features as Safe Harbour, but provides a higher illustrated return. In that example, Luanna said the client receives around USD 1.825 million at the end of 10 years.<\/p>\n
\u201cThese figures are guaranteed, not merely indicative,\u201d she said.<\/p>\n
She contrasted this with traditional insurance illustrations that may show higher but non-guaranteed projected returns. Luanna also highlighted the breakeven profile, saying selected products can reach breakeven in around 15 months, while some three-year and five-year products can do so in about one year.<\/p>\n
That was an important practical point. For clients concerned about lock-up, liquidity and insurance-style breakeven periods, product structure matters.<\/p>\n
Certainty As The Advisory Lens<\/p>\n
Luanna concluded by returning to the client need behind the fixed income conversation.<\/p>\n
When clients ask for fixed income, they may not be asking specifically for bonds, deposits or structured products. They may be asking for certainty, dependable income and a clearer path to future financial confidence.<\/p>\n
Knighthead\u2019s annuity solutions, she said, are designed to address those outcomes through principal protection, guaranteed returns or income streams, asset-liability matching and a structure supported by segregated custody and financial strength.<\/p>\n
For advisers, the implication is to assess annuities as part of a wider income and capital preservation toolkit. They are not suitable for every client or every allocation, but they may be relevant where the client\u2019s priority is a defined outcome rather than market exposure alone.<\/p>\n","protected":false},"excerpt":{"rendered":"\u200b\u200b\u200b\u200b\u200b\u200b\u200bAt the Hubbis Wealth Planning & Structuring Forum – Singapore 2026, Luanna Teo, Vice President, Brand Development at…\n","protected":false},"author":2,"featured_media":692683,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[142044,142048,142056,142052,142043,142047,142055,142051,142045,142049,142057,142053,142042,142046,142054,142050,84,11912,4176,4174,4175,438,56,54,55],"class_list":["post-692682","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-asia-private-banking","tag-asia-private-banking-news","tag-asia-private-banking-online-training","tag-asia-private-banking-training","tag-asia-wealth-management","tag-asia-wealth-management-news","tag-asia-wealth-management-online-training","tag-asia-wealth-management-training","tag-asian-private-banking","tag-asian-private-banking-news","tag-asian-private-banking-online-training","tag-asian-private-banking-training","tag-asian-wealth-management","tag-asian-wealth-management-news","tag-asian-wealth-management-online-training","tag-asian-wealth-management-training","tag-business","tag-e-learning","tag-finance","tag-personal-finance","tag-personalfinance","tag-training","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/692682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=692682"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/692682\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/692683"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=692682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=692682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=692682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}