Posts Tagged ‘Best’
U.S. life reinsurance segment stable: Best
November 19th, 2009
The report by Oldwick, N.J.-based Best, which is dated Nov. 23, states that while reinsurers “certainly were not insulated from the fallout of the economic downturn, direct writers generally were impacted more severely.”
“Direct writers maintain significant exposure to separate-account risks through variable product platforms,” according to the report. “U.S. life reinsurers deliberately have avoided underwriting these products because of their complexity, tail risk related to market exposure and pricing considerations, including the costs of hedging.”
Life reinsurers also are less dependent on investment income and achieving higher yields because they have less exposure to interest-sensitive lines of business, according to the report.
However, life reinsurers do “need to remain vigilant in their own capital management practices,” says the report. And their balan
Tags: Best, Stable Best
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