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A.M. BestTV: U.S. Health Insurers Become More Aggressive Investors, Say A.M. Best Analysts

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In this A.M.BestTV episode, Jennifer Asamoah, financial
analyst, and Jason Hopper, associate director, industry research and
analytics, both of A.M. Best, said health insurers' investments
have included more non-traditional assets and higher-risk bonds. Click
on http://www.ambest.com/v.asp?v=healthinvestments818
to view the entire program.

The make-up of the U.S. health insurers' investment portfolio has
undergone a sizeable growth over the last decade. Asamoah highlighted
what has driven that growth.

"The health industry has seen a sizable growth in invested assets,
averaging 8% annually with a shift to non-traditional asset classes,"
said Asamoah. "The challenge of the low-interest environment has
compelled many carriers to consider these non-traditional asset classes
as a means to boost their overall investment income. Also, the growth
trend is driven by national players, such as Kaiser, which accounted for
22% of the segment's assets, as well as the top five carriers, which
accounted for 44% in 2017."

Hopper spoke about whether the shifts have resulted in improved
investment income.

"Overall, gross investment income per asset has been relatively
consistent. From a broader perspective, investment income as a whole has
been around one-quarter of total net operating gains over the last 10
years. Growth and investment income have moved within tandem with
overall operating performance," he said.

To access a copy of this special report, titled, "U.S. Health Insurance
Companies Expanding Investment Options," visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276604

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