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    Insurance companies and corporate bonds Investment Club

    Insurance companies and corporate bonds Investment Club


    Insurance companies and corporate bonds

    Posted: 05 Nov 2019 02:13 PM PST

    I was looking through hallmark financial services annual report (an insurance company) and although on paper they have a crazy amount of short term investments a large chunk is in corporate bonds and was wondering how much that negates their value as a risk deterrent. I took a quick look at some corporate bond funds during the last recession and even though they did perform better than stocks, for an insurance company that needs to keep a stable portfolio it could be a major risk. I think the rest of their fundamentals and the price look great but that small detail might create a huge risk for the company. Also wondering how insurance liabilities are listed on the balance sheet stupid question I know but i'm still not very familiar with everything.

    submitted by /u/Corprol
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