CASE STUDY

RBC and SILAC partner with Bloomberg to set a new standard for FIA index design

RBC Capital Markets

RBC Capital Markets is a global investment bank known for its strength in cross-asset structuring, quantitative index design, and a deep commitment to outcome-oriented solutions. Serving insurers, asset managers, and institutional clients around the world, the firm blends advanced analytics with a collaborative approach that helps partners navigate fast-moving markets.

What sets RBC apart is its ability to translate complex market needs into clear, practical index solutions. Its Quantitative Investment Strategies team is recognized for building products that are both innovative and intuitive, designed for real-world use across fixed indexed annuities (FIA), structured products, ETFs, and more.

RBC worked with SILAC Insurance Company, acting as both a design partner and strategic guide, helping create a modern FIA index built for today’s market conditions and tomorrow’s client expectations.

Key insights

Insurers needed FIA indices that adapt quickly to changing markets and support more consistent performance across cycles.

Traditional low-volatility benchmarks struggled to capture rebounds or manage rate shifts, leaving meaningful gaps in diversification and control.

RBC and SILAC aligned around a forward-looking index design, with Bloomberg providing the data and infrastructure to turn that vision into a scalable solution.

Problem

As demand for fixed indexed annuities surged, the market faced a clear challenge. Many legacy FIA indices were tied to basic equity benchmarks or traditional low-volatility models that struggled during rapid rebounds or shifting rate environments. Insurers needed tools that could adapt, diversify, and deliver steadier performance for policyholders.

SILAC was feeling these pressures firsthand. The firm wanted an index that could stay resilient across cycles, support more competitive crediting, and bring a fresh level of transparency to its platform. Existing options weren’t keeping pace with the needs of a fast-changing retirement market.

Internally, RBC and SILAC teams were asking the same questions: How do we capture more upside without sacrificing control? How do we manage interest-rate risk more effectively? And how do we build a solution that feels made for the modern FIA landscape, not the one from a decade ago?

It became clear that the market needed something new. SILAC didn’t want another off-the-shelf index. It needed a partner willing to co-create a forward-looking, multi-asset solution with the strength and scale to stand behind it.

RBC turned to Bloomberg to help bring that vision to life.

Solution

From the outset, our collaboration centered on clarity. RBC came with strong quantitative insight and a deep understanding of insurer needs. Bloomberg brought trusted data, robust infrastructure, and a shared commitment to precision.

Together, the companies built the Bloomberg VERSA 10 Index (BVERSA10) – a dynamic, volatility-targeted, multi-asset strategy engineered for SILAC’s FIA platform.

What set this partnership apart was the way we worked as one team. Bloomberg helped refine the design using our independent data, rule-based framework, and long history building indices that meet strict operational standards. RBC shaped the strategy with their cross-asset expertise, including a proprietary long/short capability across U.S. equities and Treasuries.

This flexibility allowed the index to respond more quickly to changing markets, manage interest-rate risk with greater control, and target 10% volatility to capture more upside than traditional 5% models. Bloomberg’s infrastructure ensured seamless integration into SILAC’s workflow and supported broad distribution across the insurance ecosystem.

The result was a next-generation benchmark built with precision, engineered for resilience, and designed to give insurers and investors clearer, more consistent performance across cycles.

Result

With BVERSA10, SILAC introduced an index framework that brings new clarity to FIA conversations. Advisors now have a tool that helps explain performance in a way that feels intuitive, transparent, and grounded in real-world behavior.

The early results speak to the strength of the design. Back-tested and live data show compelling long-term performance under historical market conditions, including a 10-year annualized effective return of 12.97%. Year-to-date, the index has kept pace with the S&P 500 while operating at roughly half the realized volatility.

For SILAC, this means deeper client confidence, stronger pricing efficiency, and a solution that differentiates their annuity lineup. For RBC, it marks a new benchmark in multi-asset FIA design. And for Bloomberg, it reinforces our role as a trusted partner helping insurers meet the evolving needs of retirement savers.

Operationally, SILAC and RBC teams now spend less time explaining index limitations and more time focusing on investor goals. Bloomberg’s infrastructure also helps streamline reporting and oversight, supporting a smoother experience across teams.

Looking ahead

BVERSA10 opens the door to a wider set of opportunities. Its design is flexible enough to support future FIA products, indexed universal life offerings, structured settlements, and pension risk transfer solutions.

As the retirement market grows and investor expectations evolve, we see this partnership continuing to expand. RBC is already equipping advisors with richer insights through AI-powered tools, while SILAC is using the index to anchor new product innovation.

For Bloomberg, this collaboration is a blueprint for what’s possible when we combine our indexing expertise with partners who share our commitment to clarity, precision, and long-term value. We look forward to building on this foundation together and supporting the next wave of insurance-linked index solutions.