What companies are we talking about when we say companies on the edge?

So that we'll all be on the same plane, I've grouped some of the more well-known companies as follows:

  • APPROACHING THE EDGE: Fidelity Mutual?, Mutual of New York?, and Travelers?
  • AT THE EDGE: First Capital, Monarch Life, and Mutual Benefit.
  • OVER THE EDGE: Executive Life

--  Mark A. Davis

1992 - SOA - Companies on the Edge, Society of Actuaries - 20p

  • 1992 0218 - GAO - INSURANCE REGULATION: The Failures Life Insurers of Four Large - 23p

  • 1992 - SOA - Companies on the Edge, Society of Actuaries - 20p
  • 1999 - SOA - Insurance Company Failures of the Early 1990s - Have We Learned Anything?, Society of Actuaries - 25p

  • 2013 - SOA - Comparative Failure Experience in the U.S. and Canadian Life Insurance and Banking Industries from 1980 to 2010, Society of Actuaries - 48p
  • Year?? - - Working Party - Insurance Company Failure - 65P
  • FCIC Interviews Introduction - AIG
  • U.S. and Japan Life Insurers Insolvencies Case Studies: Lessons learned from resolutions, A Geneva Association research Report, Edited by Etti Baranoff - 52p
    • APPENDIX - Insolvencies 2008-2012 by country - p45
  • 2013 - Institute of Actuaries of Australia - Leadership and Life Insurance Failures – What can we learn about Financial Leadership? - 32p

Mr. RUBINSTEIN. I refer the chairman to the case of Gordon v. United States Department of the Treasury, which is reported at 846 Federal Reporter 2nd, page 272, in which the priority issue was 31 U.S.C. section 3718.

  • The Gordon case is more fully reported at the District Court level at 668 Federal Supplement 483, where the court goes into some detail of the statute, but cites other case law in the area, including what is called the Royal Drug case by the United States Supreme Court, the issue being what is the business of insurance?

And the position being taken by these agencies is that the liquidation of an insurance company is not the business of insurance.

1988 09/14-15 - GOV - Insurance Company Failures

  • [PDF-409p, No Video]
  • An interesting question arising in third-party guaranteed defaults is what happens when the guarantor collapses
  • When the letter-of-credit bank or insurance company goes under, or the corporate guarantor goes bankrupt, there is no more credit enhancement or guarantee on the bond issue.
  • In these instances bondholders usually lose.
  • Such was the case with the $1.6 billion of munis backed by Executive Life and the $600 million of housing issues backed by Mutual Benefit Life Insurance Company.  (p150)

-- C. Richard Lehmann, President - Bond Investors Association From 1994 "The Handbook of Municipal Bonds" CHAPTER 33: Municipal Bond Defaults

1995  - GOV (House) - Debt Issuance and Investment Practices of State and Local Governments - 968p

  • House - Committee on Banking and Financial Services - Subcommittee on Capital Markets, Securities, and Government Sponsored Enterprises