ACLI Applauds FSOC’s De-Designation of Life Insurer

WASHINGTON, Sept. 29 -- The American Council of Life Insurers issued the following statement by President and CEO Dirk Kempthorne on the de-designation of the American International Group as "systemically important" by the Financial Stability Oversight Council:

"We strongly support the Financial Stability Oversight Council's (FSOC) action today. The designation of life insurance companies has not served FSOC's intended purpose of safeguarding the nation's financial system.

"No life insurer should be designated as 'systemically important' and FSOC should rescind the designation of the remaining life insurer. Life insurers are sources of financial stability in the economy. Their long term promises and buy-and-hold investment philosophy provide a shock absorber for the economy in times of stress.

"We have consistently recommended to FSOC that instead of designating non-banks such as life insurers as 'systemically important,' it could better protect the nation's economy and American consumers if its efforts focused on assessing macro-prudential risks to U.S. financial stability."