Life company assets: a rater's view
Article Abstract:
The investment practices of the life/health insurance industry have shifted greatly in the past 15 years. Consumers switched from their traditional view of insurance as part of an individual's savings and and investment plans and, instead, saw insurance in terms of rate of return. So the industry devised products based on high-risk investments that had competitive interest rates. But due to the economic downturn of the 90's, coupled with customers' desires for more conservative investment, the industry to replaced these investments with securities of investment grade or with government backing.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1991
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Six-month advance financial results - 1992
Article Abstract:
The life and health insurance industry's financial results from Jan 1, 1992, to Jun 30, 1992, were affected by the poor economy and slow premium growth. For example, weak interest rates and depressed real estate markets help lower the industry's return on equity from 14.1% in 1991 to an annualized rate of 11.3% for the first half of 1992. Insurers strove to increase profitability through cost cutting and improved efficiency rather than maintain market share in a market with low margins and weak product demand.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1992
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Best's insolvency study: life/health insurers 1976-1991
Article Abstract:
The A.M. Best Co conducted a study on 290 life and health insurance companies that became insolvent or financially impaired companies (FICs) between 1976 and 1991. Several factors have influenced the insurance industry since the 1970s, including high inflation, the depression in the real estate market and the aging of the population. Fifty-eight insurers became financially impaired in 1991, compared to only 20 in 1983. Some 53% of the FICs were in Arizona, Texas, Louisiana and Oklahoma.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1992
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- Abstracts: Underwater options: strategies under the new accounting rules. Changes in work/family status and their impact on changes of coverage
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