SPDR® S&P Insurance ETF

A company managing higher risk products must maintain a higher level of minimum capital compared to a company with a relatively lower level of risk.

As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.

The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.

P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.

Policyholder liabilities, or policyholder reserves, represent the future claims that may arise for the pool of policies the insurer writes.

Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.

Interest rates are a key performance driver for life insurance companies, affecting their margins, hedging costs, and product sales.

Term life insurance provides guaranteed benefits to beneficiaries for a specific period of time in case of the sudden death of the insured person.

Life insurance (PRU) (MET) policies come in various forms that cater to people in different age groups and with different financial goals.

Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.

Banking stocks are expected to benefit from higher interest rates, but not immediately. Also, rising interest rates would be countered by higher existing liquidity.