The percentage of the company’s investment portfolio from the annual report dedicated to investment grade bonds (see Bond) other than the CMOs (see CMO & Structured Securities).
Specifically, this includes: (1) issues guaranteed by U.S. and foreign governments which are rated as “highest quality” (Class 1) by state insurance commissioners; (2) nonguaranteed obligations of governments, such as Fannie Mae, which do not carry full faith and credit guarantees; (3) obligations of governments rated as “high quality” (Class 2) by state insurance commissioners; (4) state and municipal bonds; plus (5) investment-grade corporate bonds as defined by the state insurance commissioners. The data is based exclusively on the definition used by state insurance commissioners. However, on the companies for which a more detailed breakdown of bond ratings is available, the actual bond ratings are used in our rating process to calculate the Investment Safety Index.
The percentage of the company’s investment portfolio from the annual report dedicated to items such as premium notes, collateral loans, short-term investments, policy loans and a long list of miscellaneous items.
The total annual amount paid by the health insurer to providers (physicians or nurse practitioners) under various contracts including bonus arrangements, stop-loss arrangements, etc. This amount is part of the provider compensation.
Nonresidential mortgage related and other securitized loan-backed or asset-backed securities. This category also includes CMOs with noninvestment grade ratings.