financial institutions other than depository financial institutions

13
2-1 Financial Institutions other than Depository Financial Institutions

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Financial Institutions other than Depository Financial Institutions . Keys To Success. Distribution Capabilities Funding/Liabilities Assets/Fund deployment (including investment) Compliance Product Pricing Risk Control Operational Efficiency. Life Insurance Companies. Distribution - PowerPoint PPT Presentation

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Chapter 2Additional risk: uncertainty of liabilities
Operational efficiency
Deal with state regulation
Assets:
Investments
62.9
Very different business
Pricing of products
Vast majority of funds in/out in one year
2-*
Reduced spread of risk
Less investments, so performance not as significant
While P&C industry premiums > life industry premiums, less than half the investments
Much more volatile short-term earnings
2-*
Abbreviated P&C Insurance Balance Sheet
Assets:
Investments
78.0
Receivables
8.3
Premium Income
Borrow and lend
No insured deposits
Higher capital ratios
Only captive finance companies still around
GE Capital. GMAC, FMC
Product expertise & sales support
Investment results flow directly to investors (less expenses)
Keys to success:
Pension Plans