Asset distribution.The interval between when the insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. receives a premium and the time a claim against that policy must be paid is known as the "float" cycle. The insurer invests the premiums and makes a profit or loss on the transaction depending on how the investment performs before it is needed to compensate the policyholder Policyholder An individual who owns an insurance policy. . Stock Rally Boosted Property/Casualty Portfolios The U.S. property/casualty insurance industry recorded a nearly 13% increase in total admitted assets in 2003. Much of that gain can be attributed to improved stock market performance that enriched insurers' stock portfolios. In addition, the value of cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments increased by more than 20% over the previous year, making it the greatest margin increase among all asset categories. The performance of common stock investments and cash and short-term investments was not matched by similar trends in the nonaffiliated bond category Although the value of this asset class increased by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 13%, the percent to total admitted assets remained virtually flat compared with last year. 2003 ($ millions) Mortgages & Invested Real Estate $3,755 Nonaffiliated Preferred Stocks $9,205 Agents' Balances Collected $38,533 Affiliated Bonds & Stocks $51,739 Other Invested Assets $52,962 Agents Balances Deferred $67,546 Cash & Short-Term Investments $89,298 All Other Assets $91,891 Nonaffiliated Common Stocks $126,560 Nonaffiliated Bonds $642,839 Note: Table made from pie chart. Life Insurers' Separate Account Assets Flourished The U.S. life insurance industry continued to recover in 2003 from the effect of several adverse investment factors including low interest rates, weak equity market returns, worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension corporate credit, declining fee income and large investment losses. Separate accounts are established to fund variable life insurance, variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. , and modified guaranteed annuities and life insurance. The separate accounts also may be used to fund guaranteed benefits. As a result of the improving equity markets and higher allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as to equities by policyholders, total separate account assets rose by 23% to over $1.186 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. . 2003 ($ millions) Real Estate $20,203 Preferred Stock $29,319 Common Stock $64,186 Cash & Short-Term Investments $79,436 Contract Loans $106,249 Other Assets $188,966 Mortgages $261,072 Separate Accounts $1,186,193 Bonds $1,941,081 Note: Table made from pie chart. Source: Statistical Studies (Published 6/28/2004) |
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