Before revision:  The hedge effectiveness is assessed by comparing profit-and-loss performances for an unhedged and three statically hedged portfolios . The results provide a comprehensive analysis on valuation and hedging the longevity risk, interest rate risk and equity risk for the GMMB embedded in VAs, and highlight the benefits to insurance providers who offer those products .
After revision:  The hedge effectiveness is assessed by comparing profit-and-loss performances for an unhedged and three statically hedged portfolios are introduced, and their performances are assessed by comparing the short term and long term portfolio's volatility. Recently, we noticed FST algorithm can only be used to hedge the gross liability of GMMB and it leads to an incorrect result when applying FST algorithm to the net liability model. We have modified the method we used in the hedging part and obtained the reliable result now. They will be reported in near future .