The SECURE Act
Let ALIRT help you implement a “best practice” approach to selecting annuity carrier partners as part of your fiduciary duty and safe harbor requirements.
Mortality for the Life Insurance Industry in 2023
In this review we highlight the increase in mortality and its continued impact on the U.S. life insurance industry.
U.S. Life Insurers’ Bermuda Reinsurance Exposure
The U.S. Life Insurance Industry has long utilized foreign reinsurance as part of its risk and capital management strategies. In recent years the use of foreign reinsurance (particularly via Bermuda reinsurers) has
BBB-rated Bond Exposure for Life Insurers
In this article, you’ll read about the significant increase in NAIC Class 2 bond holdings by U.S. life insurers since the 2008-2009 financial crisis, driven by a search for higher yields amidst
Annuity Surrenders Rise for U.S. Life Insurers
In this report, we discuss the increasing level of annuity surrenders, the potential risks of higher surrenders, and any offsetting factors to these risks.
Advantage Capital and the Fallout from 777 Re
In this report we explore ACAP’s relationship with 777 Re and the possible lingering ties that the ACAP life insurers may have to this now defunct reinsurer and its parent company 777
Financial Struggles Deepen for the Columbian Financial Group
The two life insurers of the Columbian Financial Group (CFG), Columbian Mutual Life Insurance Company (CML) and CML subsidiary Columbian Life Insurance Company (CLIC), experienced weak and deteriorating financial positions for many
Privately-Owned Insurers in the U.S. Life Insurance Industry
In the wake of the 2008/2009 global financial crisis, the U.S. life insurance industry underwent a spate of business sales/exits, spin-offs, and product changes in the 2010s which has continued through the
PHL Variable Insurance Company: Negative Surplus Position
PHL Variable Insurance Company’s (PHLV) filed its year-end 2023 regulatory financial statement in late April 2024, seven weeks after the required filing date of March 1. The company reported a negative surplus1
U.S. Life Insurer Exposure to Less Liquid Bonds
Life insurers have long held a mix of assets with various liquidity profiles, from the very liquid to the nearly illiquid. In this review we highlight some of the less liquid components
ALIRT Industry Update: U.S. Life Review Nine Months 2023
Our six month 2023 financial highlights based on insurers’ statutory financial statements.
Life Insurer Exposure to Alternative Investments
This review analyzes alternative investments for U.S. life insurers.
Below Investment Grade Bond Exposure for Life Insurers
Below Investment Grade (BIG) bonds consist of all bonds rated BB+/Ba1 or lower by public rating agencies. In the statutory financial statement, there are four different “Classes” of BIG bonds (and their
Largest U.S. Surplus Lines Carriers Underperforming the Broader Commercial Lines Market
Last month, A.M. Best released its annual study of the U.S. surplus lines market. We thought this a perfect opportunity to review the financial quality of the largest domestic E&S insurers, per
Privately-Owned Insurers in the U.S. Life Insurance Industry
In the wake of the 2008/2009 global financial crisis, the U.S. life insurance industry underwent a spate of business sales/exits, spin-offs, and product changes in the 2010s which has continued through the
BBB-rated Bond Exposure for Life Insurers
Life insurers significantly increased their holdings of NAIC Class 2 bonds (bonds with BBB/Baa ratings public rating agencies) in the years since the financial crisis of 2008-2009.
Prudential Agrees to Reinsure block of Guaranteed Universal Life Insurance with Somerset Re
Prudential Financial, Inc. (PRU) announced this week that it had entered into a reinsurance agreement to cede a $12.5 billion block of guaranteed universal life insurance business (GUL) to Bermuda based Somerset
Mortality for the Life Insurance Industry in 2022
In this review we highlight the increase in mortality and its continued impact on the U.S. life insurance industry.
MetLife and Prudential Cede Legacy Blocks
In the past week both MetLife, Inc. (MetLife) and Prudential Financial, Inc. (Prudential) announced reinsurance transactions pertaining to existing products and business lines. Details regarding each transaction are highlighted below:
No Surprise – Hallmark Insurer Subsidiaries Downgraded
As if on cue, last Friday (May 5th) A.M. Best downgraded the Hallmark Financial subsidiaries below the critical “A-” level to “B++” (5th highest), citing a “significant decline in Hallmark’s balance sheet
Lincoln National Reinsures $28 Billion of Reserves to Fortitude Re
On May 2, 2023, Lincoln National Corp. announced that it had entered into a reinsurance transaction with
Fortitude Reinsurance Company, Ltd. (Fortitude Re), a Bermuda domiciled reinsurer. The transaction comprises $28