In April, Clearwater released a new dynamic interest rate shock analysis report that was used to satisfy the interest rate sensitivity
section of the A.
Life insurers are more impacted than non-life insurers, but even within life insurance, interest rate sensitivity
varies by product, with savings business being the most affected.
The second table is an interest rate sensitivity
analysis that discloses the effects on after-tax net income (for the 12-month period after the reporting date) and shareholders' equity of hypothetical, instantaneous interest rate shifts as of the measurement date.
It seeks to achieve high current income while providing less interest rate sensitivity
than traditional fixed income assets.
The interest rate sensitivity
of the accountability side can be coordinated by bonds and other interest rate instruments.
Three main results are obtained: market risk is greatest for accident and health (A&H) insurers, followed by life (Life) and property and casualty (P&C) insurers; interest rate sensitivity
is negative and greatest for Life insurers; and interdependencies in returns are significant with the magnitude being strongest between P&C and A&H insurers.
This provision addresses interest rate sensitivity
or portfolio volatility.
Economists at the Board of Governors of the Federal Reserve System developed a proprietary economic value of equity model called the economic value model (EVM), which is a duration-based estimate of interest rate sensitivity
for each U.
Possible nominal issuers, feasibility determination, interest rate sensitivity
and other financial scoping considerations, were also discussed.
Risk exposures: State and federal regulatory changes, changes/uncertainties in Environmental Protection Agency and Federal Energy Regulatory Commission legislation, exchange rate sensitivity, interest rate sensitivity
, energy trading credit risk, financial derivative credit risk
As is discussed later, these differences can bear significantly on the interest rate sensitivity
of consumers and the nature of competition in the credit card market.
Another Fed action that appears promising is its approach to measuring interest rate sensitivity
for risk-based capital purposes.