73 posts found


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

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.

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:

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. Investments with the highest liquidity include investment grade bonds (especially

Mortgage Loan Exposure for Life Insurers

Mortgage loans have long been one of the most important asset classes for life insurers. Life insurers do not have substantial direct investments in real estate, but they do participate in real

Liquidity and Risks for Life Insurers

There has been considerable client interest in the liquidity of life insurance and annuity companies in the wake of
bank regulatory actions against Silicon Valley Bank (SVB) and Signature Bank of New

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

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 Bermuda reinsurance in particular has become