3. Leverage in the financial sector.
- The pandemic stressed the resilience of banks, but they remain well capitalized.
- Leverage at broker-dealers also remains low.
- In contrast, measures of leverage at life insurance companies are at post-2008 highs..... (p7)
2020 11 - FRB - Financial stability report - Leverage - [LINK]
- The changes in the nature of the insurance industry over the past several years, both in terms of product diversification and asset diversification, has created considerable stress on the regulatory control mechanisms. Some of the symptoms of the problem are:
2. Increased leveraging of insurance companies through long-term interest rate guarantees on an increased scale.
1984-1, NAIC Proceedings - VALUATION OF ASSETS AND LIABILITIES (p265-266)