IFI 2007 Back Issues

Insurance Finance & Investment 2007 Archives Continued
18 Mar 2008

ASSET MANAGER UPDATE.
SSgA Predicts Migration Toward Equities.
In its recently published Vision Report on Insurance, State Street Global Advisors predicts that insurers will increasingly allocate their investments toward equities and other alternatives. IFI speaks with Karen Kruck, Head of SSgA Insure-Vest, for her take on how a move to equities would impact insurer portfolios.  Page 1

INDUSTRY WATCH.
Page 1

RISK MANAGEMENT.
Calculating Economic Capital.
Insurers are increasingly adopting mark-to-market accounting over a one-year time horizon to calculate economic capital. When combined with a stress-testing approach to risk quantification, it's a methodology that yields quick insights into risk exposure.  Page 6

REGULATORY WATCH.
NAIC Winter Meeting.
Debevoise & Plimpton offer an overview of developments from the National Association of Insurance Commissioners' Winter Meeting in Houston.  Part 2 of 2.  Page 11

WHO'S WHERE?
Page 15

INVESTMENT TALKING POINT.
International Financial Reporting Standards on the Horizon? The SEC is considering whether to allow U.S. issuers to prepare financial statements in accordance with IFRS and has asked for comment. How will the SEC's vote to accept IFRS filings from U.S.-registered foreign filers impact insurers? Page 1

INDUSTRY WATCH.
Page 1

INVESTMENT TALKING POINT.
Setting the Standard V. Peter Wright and Alexander Dollhopf provide an overview of the most important issues to consider in the International Accounting Standards Board's discussion paper on Phase 2 of its ongoing insurance accounting project. Page 6

REGULATORY WATCH.
NAIC Winter Meeting. The NAIC recently held its 2007 Winter National Meeting. Some of the developments from the meeting that may be of particular interest are principles-based reserving for life insurers and securities lending. Page 11

WHO’S WHERE?
Page 15

Industry Outlook.
NAIC's Fall Meeting.
The Securities Lending Subgroup released a proposal to modify the Risk Based Capital treatment for certain types of securities lending arrangements, while the Valuation of Securities Task Force adopted a proposal to reorganize the Securities Valuation Office's valuation function.  Page 1

Industry Watch.
Investment Management Talking Point.
New Opportunties to Securitize Interest-Bearing Receivables.
The elimination of withholding tax on cross-border interest payments between U.S. and Canada and on arm's length interest payments to all non-Canadian investors and lenders will permit the tax efficient securitization of billions of dollars of Canadian consumer and corporate receivables in U.S., European, and other capital markets throughout the world.  Page 6

Investment Talking Point.
To Securitize or Not to Securitize?
Life insurers have numerous solutions available to them to fulfill their Regulation XXX reserving requirements, and while financial benefits appear to make securitization a worthwhileinvestment, insurers should be aware of hidden costs.  Page 8

Who's Where?
Page 15

IN THIS ISSUE:

Third Quarter 2007 Earnings Roundup.
AIG and MetLife remain comfortable with the degree of their subprime exposure and their alternative investments. Hilb Rogal & Hobbs
and Arthur J. Gallagher & Co. walk investors through their acquisition strategies. Page 1

INDUSTRY WATCH
Page 1

Industry Outlook.
Managing the Complexities of Compliance. Growing regulatory requirements are bringing increased scrutiny to governance, information
security, monitoring, and reporting processes. Insurance companies must be prepared to navigate the complexities of compliance and use the opportunity to improve overall management. Page 6

Regulatory Insight.
Reinsurance in Insurance M&A and ILS.
Reinsurance is a key element in creating insurance-linked securities and transforming insurance risk into securities risk. John
Dembeck of Debevoise & Plimpton examines the uses of reinsurance in insurance M&A and insurance-linked securities.  Page 10

Asset Manager Update.
Alternative Investments on the Rise.
IFI speaks with Eric Kirsch, the new head of insurance asset management at Goldman Sachs Asset Management, and John Gauthier, Head of Fixed Income Insurance Portfolio Management, about alternative investments and the future of insurance asset management at GSAM. Page 1

Industry Watch.
Allstate Investments Opens First Global Office in UK.
The investment management subsidiary of the insurance giant opens a London office to compete with the global "brand names" of leading financial services companies. Page 1

Investment Management News.
Conning Research Expects Increased Investment in Life Settlements.
The life settlement market has seen significant growth over the past ten years, and increasing investment capital will drive future growth. A new study by Conning Research & Consulting examines the strategic implications of this emerging asset class for investors and for life insurers.  Page 9

Who's Where?
Page 10

IN THIS ISSSUE:

Asset Manager Update.
Buying Opportunities in Asset-Backed Securities.
David Thompson, Co-CIO of the Vermont-based Dwight Asset Management, notes buying opportunities in asset-backed securities and a positive environment for fixed annuity products.  Page 1

INDUSTRY WATCH
Page 1

Investment Management Talking Point.
Getting the Investment Benchmark Right.
Each insurance company’s liabilities are unique, and its asset benchmarks should be, too. Adam White and Jeff Norris offer an overview of how a customized portfolio benchmark is created.  Page 6

Industry Outlook.
The Growing Market for Takaful.
Takaful, or Islamic insurance, continues to draw attention as insurers begin to set up takaful subsidiaries in the Gulf and Middle East. Stuart Thompson and Jamie Reid of Towers Perrin provide IFI with a look at the key concepts and models that underlie takaful.  Page 9

WHO'S WHERE?
Page 14

IN THIS ISSUE:

Industry Outlook.
Interview with Dr. Kurt E. Karl, Swiss Re’s Chief Economist.
Investors have been worried about insurers’ investments in subprime residential mortgage-backed securities. Dr. Karl explains why they should be more concerned about the equity markets.  Page 1

Investment Management Talking Point.
Life Settlement Derivatives. 
Brown Rudnick’s Madeleine Tan makes the case that life settlement derivatives will increasingly be used as hedges or form central strategies in investor portfolios as more investors seek exposure to the life settlement market.  Page 1

Regulatory Watch.
Solvency II.
The European Commission launches the Solvency II revision of insurance regulation to ensure that insurance undertakings are financially sound and can withstand adverse events. Laura Hodgson of Norton Rose examines the road ahead.  Page 6

Terrorism Risk Insurance Revision and Extension Act of 2007.
The House Financial Services Committee’s adoption of H.R. 2761 has the Bush administration and Treasury up in arms. LeBoeuf Lamb’s Charles Landgraf tells us why.  Page 8

Who’s Where?
Page 12

Industry Watch
Page 15

Investment Management Talking Point
Insurers’ Subprime Exposure. AIG, along with a host of other insurers, seems confident that it will not suffer heavy losses from its exposure to the subprime market. Is such confidence warranted in a volatile environment? Page 1

Software in Credit Risk Investing. Using the right software can help asset managers analyze the credit risks in insurer portfolios. Brian Ranson from Moody’s KMV shows how software can illuminate the performance of asset-backed securities, CDOs, and other credit risks. Page 4

Industry Insight
IRS 831 (B) Captives: An Overview of Applicable Law. As more states authorize the formation of captive insurance companies, captives have become mainstream insurance and tax planning vehicles. Stephen A. Malley examines the regulations surrounding captive formation and the benefits of captive ownership. Page 10

Industry Watch
Page 14

Who’s Where?
Page 15

Industry Watch
Page 1

Industry Outlook
Cross-Border Transactions. Towers Perrin’s Jack L. Gibson speaks with IFI about the prospect of US insurers being bought out by foreign acquirers, further consolidation in the US life insurance industry, and the integration and governance issues that those insurers contemplating mergers or divestitures must face. Page 4

Aviva-AmerUs: A Cross-Border Acquisition. Aviva completed its acquisition of AmerUs in October of 2006.
The success of the Aviva transaction is certain to pave for the way for increased cross-border activity, and the deal can provide valuable lessons to other insurers considering mergers. Page 7

Investment Management News
Solvency II will Increase Insurance Market’s Competitiveness. Draft directives for Solvency II should lead to a more efficient European insurance market. Solvency II requires capital for financial market, insurance, and operational risk according to a principles-based approach that focuses more on outcome. Ernst and Young comes out in support of Solvency II. Page 11

Who’s Where
Page 13

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