A measure of the financial soundness of insurance companies, provided by Best's Rating Service, with the top rating being A+. This rating is crucial for buyers of insurance or annuities as it indicates the financial security of the company, and is also vital for investors in insurance stocks.
An institutional investor is an organization, such as a bank, insurance company, or pension fund, that trades in very large volumes of securities. Institutional investors tend to dominate stock exchanges in many countries.
Interest sensitive policies are a newer generation of life insurance policies that are credited with interest currently being earned by insurance companies on these policies, ensuring that policyholders can potentially benefit from favorable economic conditions.
Investment-Grade describes bonds suitable for purchase by prudent investors. Standard & Poor's (S&P) designates the bonds in its four top categories (AAA down to BBB) as investment-grade.
A list of high-quality securities approved by a state agency for permissible holdings by fiduciary institutions.
A Public Interest Entity (PIE) is an organization that operates under the scrutiny of the public eye due to its size, importance, or influence in the marketplace. These entities often include publicly traded companies, banks, insurance companies, and other financially significant institutions.
Reinsurance is an agreement by which one insurer indemnifies another insurer in part, or in total, for the risks of a policy issued by that other insurer, helping manage and mitigate potential losses.
