July 28, 2017 The London Interbank Offered Rate, more commonly referred to as LIBOR, is on its way out the door. Many associate LIBOR with scandals including manipulation and false reporting. To others, it represents the index to which over $350 trillion of financial products reference. Technically, LIBOR is the average lending rate of banks […]
Well, the government has done it again. Yes, federal subsidy payments to issuers of Build America Bonds (BABs) and other direct-pay bonds will be cut by 6.8% in fiscal 2016
One of the most important documents for any insurance company is the investment plan. An effective plan will establish the ground work for achieving and monitoring long-term performance objectives, while controlling risk. Therefore, the investment plan should be part […]
Reducing volatility to surplus is fundamental in building a successful long-term investment program for an insurance company. A key objective of any successful investment program should be based upon generating an appropriate return while assuming the least […]
Is it important that the investments within your portfolio are reflective of your values? How does this concept impact performance? These are two of the questions that frequently come up in discussions with insurance company presidents and should be properly addressed. Moreover, […]
This article focuses on an insurance investment strategy that is unique in a low interest rate environment. The focus of this strategy is based on insurance specific methods to enhance surplus, improve Risk-based Capital (RBC) levels or reduce risk and build upon the concepts of […]
As discussed in other research, risk for an insurer must focus on diversification as it pertains to capital and surplus (unassigned funds) and how the assets relate to the products that are sold to policy holders (members). The following discussion will utilize a few of these concepts […]
A key factor in the success of an insurer is the performance of the investment portfolio; unfortunately, the valuation tools used to measure insurance performance are often inappropriate. Investment success is often measured by comparing the total return of our […]
When compared to all other types of investment portfolios the performance objectives and risk considerations are significantly different for insurance companies. Performance for insurance companies is centered on enhancements to net investment income and positive […]
When interest rates are low, a large majority of insurers have found it necessary to make changes in order to improve the financial picture of the organization. For many this means a reduction in growth rates; however, for others it has meant more dramatic […]
