Best’s Special Report: U.S. Health Insurance Companies Expanding Investment Options
The Best’s Special Report, titled, “Health Insurance Companies Expanding Investment Options,” notes that the challenging low interest rate environment has compelled health carriers to consider non-traditional asset classes as a means to incrementally bolster overall investment returns Invested assets in aggregate for the health industry increased to
The share of bond portfolio allocations to NAIC-2 rated bonds has more than doubled since 2008, to 15.7% at year-end 2017. While the companies with the largest bond portfolios have seen the most dramatic movement, this transition has been across the segment. More than 60% of all companies within the segment have increased their NAIC-2 bond allocations since 2013, at least partially driven by an increase in bank security holdings. Health carriers also have increasingly been looking to invest new money in private placement bonds. The industry has nearly doubled its allocation private placement bonds since 2013, with a 10.1% increase in investments in 2017. Schedule BA assets, which are viewed as high risk, nearly doubled to 5.1% of overall allocations in 2017 from 2.7% in 2009.
Overall,
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276604.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180807005544/en/
Associate Director –
[email protected]
or
Financial Analyst
[email protected]
or
Director
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
BRIEF: Man injured, cited for DUI following Monday evening crash
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News