An additional line of defense against unexpected underwriting losses is the insurers investment income from its asset

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An additional line of defense against unexpected underwriting losses is the insurer’s investment income from its asset portfolio plus any new premium income flows.

Consequently, falling asset values (e.g., due to a stock market decline) can threaten the solvency and safety of firms in the insurance industry.

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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