The Spectrum Approach to Insurer Financial Oversight – PC

Adopting a binary approach to the consideration of an insurer’s financial strength; i.e. that the carrier is either solvent (good) or insolvent (bad), is a common and potentially costly due diligence mistake. As historically not many insurers become insolvent (though more do so in the property & casualty and medical health insurance sectors) , distributors of their products may conclude that carrier financial oversight is therefore either unnecessary or something to be passed over lightly. While we agree that insolvency always equals a bad outcome, it does not follow that all solvent companies are necessarily “good.”

Unpacking Hurricane Ian Losses

As ALIRT prepares to digest the 9 month 2022 statutory financial filings issued late last week, we pause to consider the impact of Hurricane Ian which struck Florida with sizeable force in late September.

Lincoln National Update Following $2.6 Billion Quarterly Loss

On November 2, 2022, Lincoln National Corporation (LNC) announced a $2.6 billion GAAP1 net loss for
the third quarter 2022, which followed its annual review of reserve assumptions and deferred acquisition
costs (DAC). The loss included the following: