Reinsurance helps life insurers transfer risk and release capital. But when it's internal--between affiliates--and the reinsurer is offshore, it's hard to tell if the deal is real or just 'regulatory arbitrage.'
Leading private equity-linked fixed indexed annuity (FIA) issuers ceded the risk (the liability) of 95% of their 2021 sales to the balance sheets of affiliated or co-owned reinsurers located mainly in Bermuda.
Many for-profit US life/annuity companies do not use independent reinsurers. They use an affiliated or captive reinsurer in a jurisdiction like Bermuda, the Cayman Islands, Vermont, or Arizona. This makes their operations less transparent.
Harbinger's CEO and chairman, Philip Falcone (in photo) will resign Dec. 1, to focus on HC2 Holdings and Harbinger Capital Partners. He will depart with a bonus of $20.5 million.
U.S. share of global IPOs by foreign companies sits at 9.0%, continuing the trend of foreign companies avoiding U.S. equity markets. This measure remains far below the average of 26.8% from 1996 to 2007.
Vanguard funds saw inflows of $17.45 billion in October and $165.4 billion for the first ten months of 2014. YTD, Dimensional Fund Advisors was second with $24.4 billion.
LIMRA's new report, 'Ready, Set, Retire? Not So Fast!... Revisited: A Canadian Consumer Retirement Study,' is a follow-up to two previous studies that LIMRA conducted in Canada.