As a result, sales usually didn't raise questions about the continued use of the cost method of accounting for the remaining investment portfolio
Gerling Global Life's investment portfolio
is of good quality, with only a modest amount of bonds in lower quality instruments.
The investment portfolio
and diversified investments currently account for 14 percent of assets.
These include (1) improving the quality of our investment portfolio
by selling subordinated bonds and reinvesting in senior bonds, (2) improving returns to the Partnership by reinvesting both bond sale proceeds and contingent interest payments at a coupon rate that is expected to be higher than the 5% per annum coupon rate on the Northwood Lake bonds and (3) improving the clarity of the Partnership's financial statements by eliminating the assets, liabilities and operating results of Northwood Lake Apartments from our financial statements.
The Company's investment portfolio
is principally in energy related private companies.
Best believes that the potential variability of Max Re's alternative investment portfolio
introduces an elevated risk factor to the company; however, this risk factor is included in Max Re's risk-based capital model.
When Fitch reviews the investment portfolio
of an insurance company, Fitch applies a stochastic (statistical) approach that includes loss given default and the effect on market price of the fluctuation due to interest rates, credit spreads, and rating migrations.
For a relatively small cost in the short term, it creates significantly enhanced future earnings capabilities for our investment portfolio
These ratings reflect RBCI's prudent capitalization, a trend of excellent underwriting and operating performance, a sound investment portfolio
and a favorable liquidity position.
Fitch's ratings on NFS reflect the company's conservative financial leverage, solid earnings-based interest coverage and a high-quality investment portfolio
Its flexibility, scale and duration will continue supporting prudent investment portfolio
growth on a cost effective basis.