SVO - Securities Valuation Office - NAIC

  • Senator Ben NELSON (D-NE). Would you do this in the same way, let us say, that the National Association of Insurance Commissioners, which I used to head in a previous life, the way they do it through the Securities Valuation Office in New York that is part of the NAIC?
  • Gary GENSLER (CFTC - Chairman). Senator, I dare say you are far more familiar with how that works. I am not familiar with the specifics there.
  • Senator NELSON. Well, they do value securities that do not have a market value based on one of the markets; in other words, private placements and the like.
    • So tailored securities probably as much as standardized securities would fit into that sort of a category, where analysts would work their way through establishing what the leverage is, and then establishing capital requirements for that leverage.  (p22)

2009 0604 – GOV (Senate) - Regulatory Reform and the Derivatives Market - 196p

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.