NU Online News Service, Jan. 12, 2005, 4:22 p.m. EST
Liquidity at U.S. life insurers may have risen slightly between 2002 and 2003.[@@]
Analysts at Moody’s Investors Service, New York, give that assessment in an update on the model they use to measure life insurers’ liquidity.
“Liquidity” is a term that refers to a company’s ability to get to cash and assets that are easy to convert into cash.
Moody’s liquidity model “measures the adequacy of an individual statutory entity’s asset liquidity profile relative to the potential liquidity demands that could be placed on it in a stress scenario, given its liability mix,” Moody’s analysts write in the liquidity update.