Federal Home Life Insurance Compnay

Deloitte: Insurers May Face Significant Hurdles Bolstering Top- and Bottom ...

/PRNewswire/ -- Ongoing global economic challenges will make it difficult for insurers to generate growth and profits over the short- and long-term, according to a new report from Deloitte assessing the insurance industry's prospects for the new year. However, by focusing on strategic growth opportunities, operational excellence and innovation, insurers may still achieve their goals, according to Deloitte's "2012 Global Insurance Outlook: Generating growth in a challenging economy takes operational excellence and innovation," released earlier today.

"Global economic doldrums, low interest rates, persistently high unemployment and a sluggish housing recovery have created challenges for insurers," said Rebecca Amoroso, vice chairman, Deloitte LLP and insurance sector leader.  "Yet even in such uncertain economic times, there are opportunities to generate profitable growth by attracting new customers and growing market share through product development, distribution and marketing reevaluation, and reinventing the customer experience. At the same time, insurers must keep transforming their operations to improve margins and drive more profit to the bottom line by adopting new technologies and management strategies to squeeze unnecessary costs out of the system, as well as employ their people and capital more productively."

Sam Freidman, Deloitte's insurance research leader, adds, "While achieving growth, operational excellence and innovation in such a difficult economic and competitive environment might be easier said than done, opportunities are available for insurers that can seize the moment. There are many options insurers might consider to grow even in the toughest of economies if they can overcome the obstacles they face."

Trends, obstacles and challenges insurers will face in 2012, according to Deloitte's report, include:

Market Outlook

Property and casualty insurer top lines will benefit from rising prices prompted in part by high 2011 catastrophe losses and subsequent hikes in reinsurance premiums. In personal lines, auto and homeowners carriers have both consistently seen higher, loss-driven rates while the soft market in commercial lines appears to have bottomed out with carriers and brokers reporting significant premium increases on renewals.

Why the Federal Home Life Insurance Company Is Going Strong ...

The company has almost twice the availability of capital as they actually need at any given time. If you have a claim with the company, they should be able to pay it with no problem. The company is getting stronger each year. The amount of capital they have and the surplus they carry has increased at a rate of 11.5% per year since 1991. This means that when you purchase a policy, you have a good reason to depend on the company to be there when it is time to make a claim. The operating performance of Federal Home Life Insurance Company is not as strong as its capital and surplus would suggest. However, the numbers still show that the company is adequate. Over five years, they had a return on investments of 0.7%. The company would be able to liquidate its assets with money left over. Its liquidity ratio is 130.9%. Hopefully, as the years go by, that number will increase. Yet, it should be an academic question. You do not want to be with an insurance company that liquidates. It is only a way to measure soundness. Federal Home Life is not limited to one part of the country. While it is true that 42% of its business goes to five states, the rest is scattered out among many other states. If you live anywhere but New York, you can have an insurance policy with Federal Home Life. This also means that it will not be devastated by a natural disaster that happens in only one state. This company has stable earnings. It has been compared with much larger companies in the reliability of its income. What this means to you is that the company is sound and can be trusted. The Federal Home Life Insurance Company is held up by GE Assurance Group. You can count on the fact that the GE group will not let Federal Home go under. Just as you count on Federal Home Life, you can count even more on GE Assurance.

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