Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Insurer Reports Life Settlement Loss

By staff Writer

X
Your article was successfully shared with the contacts you provided.

AXIS Capital Holdings says it expects its third quarter operating results will suffer after an increase of about $136 million in the fair value liability of an indemnity derivative contract that is exposed to life insurance settlements.

AXIS, Pembroke, Bermuda, attributes the loss to “unfavorable longevity experience in the life settlements portfolio underlying this contract.”

In addition, AXIS, a specialty insurer and reinsurer, expects to lose around $260 million in other-than-temporary-impairment losses in a fixed maturity investment portfolio of medium-term notes.

Despite the losses, Standard & Poor’s Ratings Services said there would be no impact on its ratings for AXIS.

“We consider AXIS’s losses in the indemnity derivative contract modest relative to the group’s capital base,” S&P stated.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.