1 million) in
interest sensitive investment policies - which he suggested had allowed insurance companies to take in deposits in the guise of insurance premiums - controlled by the three companies; Traditional and equity-linked policyholders would not be affected by the temporary freeze on interest-sensitive policies and should continue to transact business as usual at their respective institutions.
11 /PRNewswire/ -- American Heritage Life Insurance Company announced today that it is acquiring effective December 31, 1996, a block of payroll deduction,
interest sensitive whole life business from Kentucky Home Mutual Life Insurance Company and its affiliate Keystone Life Insurance Company.
Borrowing with government-guaranteed debt may be
interest sensitive, but the guarantees have the effect of preempting resources from those without access to riskless credit.
These factors are partially mitigated by spread compression in COUNTRY Financial Life Group's blocks of
interest sensitive business with high guaranteed rates, elevated exposure to commercial mortgages, lower rates of return relative to its peer groups and exposure to geographic concentration risk, in which over 60% of direct premiums originate from Illinois.
These lawsuits typically contain allegations that an
interest sensitive life insurance policy was sold with a projection that the policy would be paid-up and no additional premiums would be owed after a certain number of years.
Although the demand for housing appears to have been no less sensitive to the cost of capital over the 1980s, expenditures on residential construction may nevertheless have been less
interest sensitive because disintermediation-induced episodes of credit rationing were absent during the 1980s.
Factors that could lead to positive rating actions for GLAC include increasing positive earnings trends, greater profitable premium and revenue diversification achieved by reducing the high concentration in
interest sensitive liabilities and gradual reduction in exposure to structured securities.
As rates rose throughout 1994,
interest sensitive liabilities grew rapidly, resulting in a declining net interest margin.
M2 has not been affected in this way, but it remains sufficiently
interest sensitive that it is difficult to judge the import of a path for this aggregate without reference to the surrounding economic situation.
Partial offsetting rating factors are Security Benefit Life's rapid growth and increasing exposure to
interest sensitive fixed-indexed annuities, its significant holdings in mortgage-backed securities and affiliated assets and the new business strain that could dampen its statutory operating results as a result of its continuing new business growth.
The rating action also anticipates that the group's earnings performance and capitalization will remain pressured by thinning margins on its
interest sensitive annuity business which represents over 50% of consolidated reserves.
Borrowing with government-guaranteed debt may be only partly
interest sensitive, but the guarantees have the effect of preempting resources from those without access to riskless credit.
