67 WALL STREET, New York - June 24, 2014 - The Wall Street Transcript has just published its Insurance Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Low Profitability and Low Interest Rates - Commercial Line Brokers and Underwriters - Consolidation Trends - Emerging Market Expansion - Analysis Of Personal, Commercial & Reinsurance Subsectors
Companies include: American Equity Investment Life Holding Company (AEL) and many more.
In the following excerpt from the Insurance Report, the CEO and President of American Equity Investment Life Holding Company (AEL) discusses company strategy and the outlook for this vital industry:
TWST: What's going on in the regulatory environment for you? What are some of those obstacles or opportunities on the horizon, and how are you managing them?
Mr. Matovina: There's nothing regulatory wise specific to our product. However, in our industry there's a growing conversation about the involvement of the federal government in insurance, and we've had a couple of large insurance companies be designated as systematically important financial institutions, which brings a whole list of ramifications to those companies. That's all coming out of the Dodd-Frank legislation and subjects those companies to some federal oversight, and at this time, the federal oversight people are saying that by law they are obligated to apply bank capital standard measures to these insurance enterprises.
The industry has viewed that as onerous, and there are bills in both houses of Congress now to clarify that the Federal Reserve could develop capital standards that were insurance-specific. All of the companies in our business are gearing up for compliance with ORSA - Own Risk and Solvency Assessment - but there aren't any pending regulatory matters that are unique or specific to the products that we sell and what our business is.
TWST: Can you comment on the strength of your balance sheet at this point, and are there any areas that you're working to improve?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.