All that cash earning a pittance at the moment ...$600k in first half they say
Yes, bugger that they have to hold the investments in gilt-edged bonds and bank deposits which pay bugger all - and rising bond rates would have significantly reduced bond values?
Balance - do actuaries still exist or Is the calculation of likely future liabilities all done by AI ...and hope they dont get it wrong.
I worked at Tower many many years ago and the actuary was God ....one of them tried to get me to become one as he thought I had the smarts to be a good one ...but it seemed a pretty boring job....and they weren't exactly the life and soul of the party
They could sell short dated bonds first which in theory trade close to par.
Comes down to their Treasury view & portfolio decision.
In the good old days, the insurance companies were allowed to have a large equity portfolio and man, some of them used to trade their positions like they were Gordon Gecko!
Comes down to their Treasury view & portfolio decision.
In the good old days, the insurance companies were allowed to have a large equity portfolio and man, some of them used to trade their positions like they were Gordon Gecko!
but of course they went broke and no one wants a broke insurer.
Bookmarks