In the world of wealth planning, the conversation around fixed income is evolving, and Luanna Teo, Vice President of Brand Development at Knighthead Annuity & Life Assurance Company, is at the forefront of this shift. Her presentation at the Hubbis Wealth Planning & Structuring Forum in Singapore 2026 offers a fresh perspective on how fixed-rate annuity solutions can complement traditional investments, particularly in a market shaped by inflation, geopolitical turmoil, and technological shifts. Teo's argument is not just about replacing existing tools but about providing clients with a broader toolkit to achieve their financial goals, particularly those seeking certainty and defined outcomes.
Teo begins by acknowledging the limitations of traditional fixed income instruments like bonds, bond funds, ETFs, ladders, and deposits. These tools, while useful, have exposed vulnerabilities in terms of volatility, reinvestment risk, scale, and flexibility over the past five years. This realization prompts a shift in focus from product categories to client outcomes. The question, she posits, should no longer be, 'What fixed income product should you recommend to your client?' but rather, 'What outcome is my client trying to achieve?'
This distinction is crucial because clients may not be seeking bonds per se but rather dependable income, risk management, capital preservation, or confidence around retirement. Annuities, Teo argues, are gaining attention globally, particularly in the US, where retail annuity sales reached USD 461.3 billion last year. This growth is linked to demographics, an aging and asset-rich population, and the rising demand for guaranteed lifetime income. Knighthead, too, has seen significant momentum, recording USD 2 billion in sales over the past eight months, with China, Japan, and Taiwan among its strongest markets.
At the heart of annuities are contracts designed to provide guaranteed returns or income streams, depending on the product structure. Teo emphasizes that Knighthead's annuities are principal-protected and can support estate planning through beneficiary nomination, including for American beneficiaries for non-American policy owners. While annuities are often associated with conservative retirement planning, Teo argues that their relevance extends further, serving clients seeking to diversify income sources or add a guaranteed return component alongside bonds, deposits, and structured products.
Knighthead Annuity & Life Assurance Company, established in 2014 in the Cayman Islands, serves international clients through fixed annuity products. The company operates within the broader Knighthead Insurance Group, which includes international, US, and reinsurance businesses. Teo highlights the platform supporting the products, with client assets held through a segregated master trust structure administered by Ocorian Trust and custodied with Goldman Sachs Bank and J.P. Morgan. Policyholders are trust participants, and Knighthead does not directly hold client assets.
The company's audited financial statements, AM Best A-minus financial strength rating, KBRA A rating, and conservative investment approach further underscore its financial strength. Knighthead's portfolio, managed on an asset-liability matching basis and without leverage, includes over 1,500 positions. The capital base, crossing USD 8 billion in assets under management in March this year, includes USD 7 billion from client premiums and USD 1 billion in shareholder equity.
Knighthead offers three main annuity solutions: multi-year guaranteed annuities (MYGAs), fixed-index annuities, and single premium immediate annuities. MYGAs provide a fixed guaranteed rate over a selected term, typically three to 10 years. Fixed-index annuities allow clients to participate in selected equity indices while protecting principal against market downturns. Single premium immediate annuities are designed for retirement income planning, offering guaranteed income payments over a defined period or for life.
Teo uses the Knighthead Safe Harbour product to illustrate how these solutions work in practice. For cases of USD 250,000 and above, the product offers fixed rates of 5.35% for three years, 5.75% for five years, 5.85% for seven years, and 6% for 10 years. Fixed-index annuities, on the other hand, offer S&P 500 caps of 10% for a five-year term and 10.25% for a seven-year term. Selected products also include features such as a 50% free withdrawal benefit and a 101% death benefit, available in multiple currencies.
The discussion then turns to policy illustrations, with Teo highlighting that the figures shown are guaranteed, not merely indicative. She contrasts this with traditional insurance illustrations that may show higher but non-guaranteed projected returns. Teo also emphasizes the breakeven profile, noting that selected products can reach breakeven in around 15 months, while some three-year and five-year products can do so in about one year. This is particularly important for clients concerned about lock-up, liquidity, and insurance-style breakeven periods.
In conclusion, Teo reiterates that when clients ask for fixed income, they may not be seeking bonds, deposits, or structured products. Instead, they may be asking for certainty, dependable income, and a clearer path to future financial confidence. Knighthead's annuity solutions, she argues, are designed to address these outcomes through principal protection, guaranteed returns or income streams, asset-liability matching, and a structure supported by segregated custody and financial strength. For advisers, this implies assessing annuities as part of a wider income and capital preservation toolkit, relevant where the client's priority is a defined outcome rather than market exposure alone.
