Investments

  • Walter Miller, not Inflation, started after war–1950’s
  • Current – high mortgage
  • Assets
  • Reverse Repurchase Agreements
  • Repurchase Agreements
  • Repos
  • Tri-party
  • Equity Repo
  • Reinsurance
  • The subject of futures and options is very topical.
    • Legislation and regulations enabling life insurers to begin using these instruments have been passed in several states now.

—  James A. Tilley 

1984 – SOA – Options and Futures — A Teaching Session, Society of Actuaries – 26p

  • The default by General American Life Insurance on $6 billion in funding agreements in 1999 led to a retrenchment in this market.

2001 – SOA – Floating Rate Funding Agreements, Society of Actuaries – 23p

  • 1952 – LR – Legal Framework, Trends, and Developments in Investment Practices of Life Insurance Companies, by Haughton Bell and Harold G. Fraine – 41p
  • 1982 – SOA – Investment Vehicles to Cope with Inflation, rsa82v8n115 – Society of Actuaries – 24p
  • 1984 – SOA – Options and Futures — A Teaching Session, rsa84v10n13 – Society of Actuaries – 26p
  • 1987 – SOA – New Investments and New Investment Strategies, Society of Actuaries – 48p
  • 1998 – SOA – Corporate Governance of Investments: Avoiding the Next Class-Action Suit, rsa98v24n374pd – Society of Actuaries – 20p
  • 2001 – SOA – Floating Rate Funding Agreements, Society of Actuaries – 23p
  • 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.

  • 2009 – SOA – XXX Reserve Funding is Debt for Federal Tax Purposes, By Seth L. Rosen and Arthur C. Schneider, tax-2009-vol5-iss3-roesen – Society of Actuaries – 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.” 
  • (p155-166) – ATTACHMENT TWO – SVO STAFF COMMENTS RE: REPURCHASE AGREEMENTS, REVERSE REPURCHASE AGREEMENTS AND INTEREST RATE FUTURE CONTRACTS
    • At its last meeting (Denver, Colorado, June 17, 1980) the Valuation of Securities (EX3) Subcommittee discussed and voted to receive a staff report dated May 20, 1980, entitled Discussion of Repurchase Agreements, Reverse Repurchase Agreements and Interest Rate Futures Contracts.
    • The subcommittee also requested the staff to prepare a follow-up memorandum discussing possible abuses of the use of these financial instruments by insurance companies. [Editor’s Note – See II NAIC Proceedings (112) 1980) Such a follow-up memorandum is attached.
  • SVO STAFF MEMORANDUM RE: FURTHER DISCUSSION OF REPURCHASE AGREEMENTS, REVERSE REPURCHASE AGREEMENTS AND INTEREST RATE FUTURES CONTRACTS*

1981-1, NAIC Proc.