Financing

  • We must understand that we no longer have any reasonable basis for making any assumptions whatever about the range within which interest rates will fluctuate.
  • Financing the squeeze by issuing commercial paper is just about the most dangerous thing a life company can do.

1981 01 - SOA - Financial Hazards of the Cash Value Life Insurance Business, EJM, The Actuary, Society of Actuaries - 2p

  • 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.”