Des Moines Register

  • 2013 0501 – Des Moines Register – Aviva USA life insurance unit to be dealt to Global Atlantic, by Victor Epstein – [link-winkintel]
  • 2013 0928 – Des Moines Register – Insurers, Banks Hail Higher Bond Yields, By Victor Epstein – [link]
  • 2013 0928 – Des Moines Register – Insurers, Banks Hail Higher Bond Yields, By Victor Epstein – [link]
    • The risk for insurers and banks is that a too rapid increase in interest rates could undermine the prices of the older bonds in their portfolios too quickly.
      • That’s one of the reason they prefer a gradual increase in rates.
      • A steep increase could also prompt holders of older insurance annuity policies to take a dim view of the rates they’re receiving, said Terri Vaughan, former head of the National Association of Insurance Commissioners.
    • “A gradual interest rate increase is positive,” Vaughan said.
      • “A very steep rise would tend to cause policyholders to look at other opportunities, increasing policy surrenders.
      • I can’t say how steep is too steep, but we went through this in the early 1980s (and) some companies had quite significant surrenders.”