Investments

  • The subject of futures and options is very topical.
    • Legislation and regulations enabling life insurers to begin using these instruments have been passed in several states now.

--  James A. Tilley 

1984 - SOA - Options and Futures -- A Teaching Session, Society of Actuaries - 26p

  • Walter Miller, not Inflation, started after war--1950's
  • Current - high mortgage
  • Assets
  • Reverse Repurchase Agreements
  • Repurchase Agreements
  • Repos
  • Tri-party
  • Equity Repo
  • Reinsurance

  • The default by General American Life Insurance on $6 billion in funding agreements in 1999 led to a retrenchment in this market.

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

  • 1952 - LR - Legal Framework, Trends, and Developments in Investment Practices of Life Insurance Companies, Haughton Bell and Harold G. Fraine - 41p
  • 1982 - SOA - Investment Vehicles to Cope with Inflation, Society of Actuaries - 24p
  • 1984 - SOA - Options and Futures -- A Teaching Session, Society of Actuaries - 26p
  • 1987 - SOA - New Investments and New Investment Strategies, Society of Actuaries - 48p
  • 1998 - SOA - Corporate Governance of Investments: Avoiding the Next Class-Action Suit, Society of Actuaries - 20p
  • 2001 - SOA - Floating Rate Funding Agreements, Society of Actuaries - 23p
  • Proposal To Add A New Bond Investment Quality Distribution Schedule As Schedule D - Part 1 B To The Life And P & C Blanks
    • Because many insurance companies, for competitive reasons, now are offering a whole range of interest sensitive products including annuities, universal life and variable life insurance, they have a need to invest in higher yielding fixed income securities.
    • Many insurers are now buying these non-investment grade securities in large volumes, which is substantially changing the overall risk profile of their bond portfolios toward a lower average quality.

To: Ms. Glenda Channel, NAIC Blanks Coordinator
From: William Smythe, Executive Director, SVO
December 19, 1985 - ATTACHMENT TWELVE-B

1986-2, NAIC Proc.

  • 2009 - SOA - XXX Reserve Funding is Debt for Federal Tax Purposes, By Seth L. Rosen and Arthur C. Schneider - 11p
    • Before the onset of the current capital markets crisis, the market for “insurance linked” securities (“ILS”) had been experiencing rapid growth.
      • ILS is a generic name for a number of innovative market solutions that have allowed insurers to access capital markets funding for various purposes.
    • These transactions, which have tapped both bank and capital markets sources for financing, are often referred to as “securitizations.” 
  • (p155-166) - ATTACHMENT TWO - SVO STAFF COMMENTS RE: REPURCHASE AGREEMENTS, REVERSE REPURCHASE AGREEMENTS AND INTEREST RATE FUTURE CONTRACTS
    • At its last meeting (Denver, Colorado, June 17, 1980) the Valuation of Securities (EX3) Subcommittee discussed and voted to receive a staff report dated May 20, 1980, entitled Discussion of Repurchase Agreements, Reverse Repurchase Agreements and Interest Rate Futures Contracts.
    • The subcommittee also requested the staff to prepare a follow-up memorandum discussing possible abuses of the use of these financial instruments by insurance companies. [Editor's Note - See II NAIC Proceedings (112) 1980) Such a follow-up memorandum is attached.
  • SVO STAFF MEMORANDUM RE: FURTHER DISCUSSION OF REPURCHASE AGREEMENTS, REVERSE REPURCHASE AGREEMENTS AND INTEREST RATE FUTURES CONTRACTS*

1981-1, NAIC Proc.