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
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,
Our six month 2023 financial highlights based on insurers’ statutory financial statements.
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
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 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
In this review we highlight the increase in mortality and its continued impact on the U.S. life insurance industry.
Our three month 2023 financial highlights based on insurers’ statutory financial statements.
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:
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
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 billion
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 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
Our year end 2022 financial highlights based on insurers’ statutory financial statements.
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
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
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
Our six months 2022 financial highlights based on insurers’ statutory financial statements.
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
Life insurance companies’ investment portfolios are heavily oriented to fixed income assets such as bonds (both “traditional” bonds and structured securities) and mortgage loans. These assets, together with policy loans and cash,