L/H impairment rate remains low in 2005.(By the Numbers)(Life/Health impairments)(Brief article)

Best's Review, June, 2006

The seven U.S. life/health company financial impairments recorded by A.M. Best in 2005 continue a trend of low impairment since 2000, according to the A.M. Best Special Report "2005 Life/Health Impairments Bounce Off 2003-2004 Historical Lows." The low impairment rates of the past three years reflect the stable financial markets and economy; the industry's efforts to diversify its asset portfolio; and consolidation that has eliminated some of the more thinly capitalized insurers.

Causes--L/H industry

Impairments (1976-2005)

Affiliate

Problems 19.6%

Inadequate

Pricing 24.0%

Rapid

Growth 16.4%

Alleged

Fraud 8.2%

Investment

Problems

...

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