General American Life Insurance Company

  • 1936 December 1, 2, 3, 7, 8 - GOV (House) - Investigation of Real Estate Bondholders' Reorganizations - Part 20 - Adolph J. Sabath (D-IL)   ---   [BonkNote]
  • MetLIfe
  • Missouri
  • The Life Liquidity Risk Working Group arose from an interest in liquidity matters in 1999 by the Life and Health Actuarial Task Force relative to guaranteed investment contracts with bail-out provisions with increased interest subsequent to the General American insolvency.

2001 - SOA - Life Liquidity Risk, by Jon E. Niehus, Society of Actuaries - 2p

  • The default by General American Life Insurance on $6 billion in funding agreements in 1999 led to a retrenchment in this market.
    • Buyers became concerned about credit risk, and sellers came under increased rating agency and regulator scrutiny.

2001 - SOA - Floating Rate Funding Agreements, Society of Actuaries - 23p

  • Summary: The sudden and unexpected default of General American has focused reviewed attention on liquidity management. General American was a large, highly-rated, and well-capitalized life insurer that defaulted on putable funding agreements that were issued to money-market funds.
  • Topics: · What happened at General American and why did the regulators and rating agencies miss the problems?· Could something like this happen again? What was the impact of reinsurance? · What is the effect of adding institutional business such as putable funding agreements on liquidity management? · Are there prudent levels of this business that can be beneficial? · What is the effect of funding agreements with downgrade provisions on liquidity risks, and do such provisions create a preference for sophisticated institutional contract holders?

2001 - SOA - Floating Rate Funding Agreements, Society of Actuaries - 23p