Life Insurance Company Yield

  • 1937 - AP - Analysis of the Yield of the Investments of a Selected Group of Legal Reserve Life Insurance Companies: 1929-1936 - Thesis, Atlanta University - 55p
    • (p14) - The extremely low yield on the real estate shows that most of it could not be disposed of at book value.
      • The mortgage market is also very stagnant1. 
    • Life insurance companies are not called on to liquidate all of their investments in the regular course of business.
      • It is for that reason that investments in mortgages are considered good for this class of companies.
      • However insurance companies have desired greater liquidity in recent years and there has been a flight from mortgages to stocks and bonds.
    •  <Mortgage vs Stocks and Bonds - 1860, 1926, 1935>
    • Policy Loans
    • (p25) - The majority of the companies do
      not need to keep much cash on hand because even when in an insolvent
      state they are usually able to meet their claims with premiums that are collected and interest on investments. 1

      • 1 Alfred M. Best, op. cit., 1936, Introduction, p. xviii.