I personally take risk adjusted rate of return very seriously. My focus on it largely comes from the notion of taking calculated risks to achieve various levels of return. For example, one might make a killing placing his or her entire life’s savings into a pink sheet stock, but risk exposure relative to the anticipated return is likely extremely unattractive.
One of the elements we find so attractive about life insurance in your portfolio is the stellar risk adjusted rate of return. But how do various life insurers themselves rate when it comes to the return they achieve on their policyholders’ money and the risk they must shoulder to achieve it?