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January 25, 2012 at 08:48 AM
Separate account life insurance assets (SALI) composed the majority of total bank-owned life insurance (BOLI) assets in the three quarters for which data is available in 2011. The findings come on the heels of the MichaelWhite/Meyer-Chatfield Bank Owned Life Insurance Holdings Report.
The report, which was compiled by Michael White Associates LLC and sponsored by Meyer-Chatfield, strives to examine and quantify benchmarks of the cash surrender values (CSV) held by banks and bank holding companies. They also examine their ratios of CSV to capital.
BOLI is growing in popularity and all 6,740 commercial banks and FDIC supervised savings banks operating in the U.S. on September 30, 2011 reported data to the report.
SALI are the CSVs affiliated with separate account insurance policies whose CSVs are buttressed by assets that are kept separate from the general assets of the insurance carrier. Among the biggest banks (those with more than $10 billion in assets) SALI assets make up 60.3% of total BOLI assets, according to the report. SALI assets were concentrated among the largest banks and although SALI assets were the largest portion of BOLI assets, they were held by the fewest number of banks.
