Business Interruption Coverage Disputes – An Update
As economic deterioration caused by the Coronavirus crisis accelerates, the issue of business interruption (BI) coverage has come to the forefront. Some impacted businesses are beginning to seek compensation from their BI insurance policies, while insurers have largely argued that coverage under the current conditions does not apply. ALIRT has received many questions from clients seeking guidance on how the resolution of this issue could potentially impact the financial standing of U.S. property & casualty insurers, many of which write property insurance coverages.
U.S. Life Insurance Industry Mortgage Loan Exposure
Mortgage loans have long been an important asset class for life insurers. These assets involve the insurer making a loan directly to a real estate developer or other property owner, rather than via less direct methods of investing in commercial real estate such as commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), joint venture real estate assets, or in the debt securities of real estate related firms.
State insurance Department Actions on Premium Forbearance – Update
ALIRT has received a number of queries regarding premium forbearance actions taken by insurance companies and state insurance regulators during the current Coronavirus crisis. These calls are driven by insured’s questions/requests as well as by broker concerns around the impact any temporary forbearance might have on the financial performance of insurers.
Prudential plc Announces Plans to IPO (or Sell?) Jackson National
Prudential Plc (PRUplc) announced yesterday that it is preparing for a partial Initial Public Offering (“IPO”) of its U.S. business (collectively referred to as “Jackson”), which is dominated by Jackson National Life Insurance Company (JNL) and Jackson National Life Insurance Company of New York (JNNY).
Regarding The Timing of Insurer Financial Updates
Given the upheaval in the economy and capital markets over the past several weeks, driven by the austere measures taken to counteract the global pandemic, ALIRT has been receiving questions regarding the frequency of new financial updates.
Potential Impacts of Capital Market Upheaval On Property & Casualty Insurers
The recent volatility in interest rates and equity markets attendant upon the spread of the novel coronavirus over the past three weeks marks a decisive shift in operating conditions versus those of the last several years. The Year End 2019 ALIRT Scores and reports (being compiled at present) do not include any impacts from the current market deterioration which all occurred in the first quarter. The March 31, 2020 quarterly statutory financial statements, which would reflect the impact of the current volatility, if sustained, will be filed on May 15, 2020, with ALIRT scores and reports available a few weeks thereafter.
Potential Impacts of Capital Market Upheaval On Medical Health Insurers
The recent volatility in interest rates and equity markets attendant upon the spread of the novel coronavirus over the past three weeks marks a decisive shift in operating conditions versus those of the last several years. The Year End 2019 ALIRT Scores and reports (being compiled at present) do not include any impacts from the current market deterioration which all occurred in the first quarter. The March 31, 2020 quarterly statutory financial statements, which would reflect the impact of the current volatility, if sustained, will be filed on May 15, 2020, with ALIRT scores and reports available a few weeks thereafter.
China Oceanwide acquisition of Genworth Update
Genworth Financial (GNW) and China Oceanwide (CO) announced earlier this month that they reached an agreement in principle with the New York State Department of Financial Services (NYDFS), whereby the companies believe they will receive a reapproval from the NYDFS of CO’s proposed acquisition of Genworth Life Insurance Company of New York (GLICNY). This agreement will include a $100 million capital infusion from GNW to GLICNY upon the closing of the acquisition of GNW by CO. The reapproval of the NYDFS remains subject to submission and approval of the documentation setting forth the agreed upon conditions.
Potential Impacts of Capital Market Upheaval On Life Insurers
The recent volatility in interest rates and equity markets attendant upon the spread of the Coronavirus over the past two weeks marks a sharp change in conditions versus those of the last several years. The Year End 2019 ALIRT Scores and reports (to be compiled over the next few weeks) do not include any impacts from the market activity since the beginning of January. The March 31, 2020 quarterly statutory financial statements, which would reflect the impact of the current volatility, if sustained, are to be filed on May 15, 2020, with ALIRT scores and reports available a few weeks thereafter.
Brighthouse Financial, Inc. Spin-off Completed & Life Insurer 6M 2017 Financial Results
Brighthouse Financial, Inc. (BHF) is a publicly-traded U.S. organization that is focused on providing individual life insurance and annuities, largely through lead insurer Brighthouse Life Insurance Company (BLIC) and Brighthouse Life Insurance Company of New York (BLNY; writes business in New York). BHF also owns New England Life Insurance Company (NEL, presently in run-off).