On 16 November 2010, CEIOPS published, for consultation, its Draft Report on Variable Annuities (VAs). The aim of the paper is to identify and address issues related to VA business. Ultimately, it is intended that common EU guidelines for the supervision of insurers undertaking VA business be introduced that would foster convergence and best practices for the supervision of insurers selling VA products. The Draft Report is the first step in this process. It addresses and makes recommendations in respect of (1) technical and actuarial issues, (2) governance issues, (3) issues regarding co-operation by colleges of supervisors, and (4) systemic and macro-prudential risk issues. Comments are invited from interested parties until 25 January 2011.