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To: yard_man who wrote (130037)10/18/2001 10:16:09 AM
From: Knighty Tin  Respond to of 436258
 
Tip, Yeah, but equities are even worse. Insurers don't have to account for risky fixed income investments unless they go belly up. They are allowed to carry them at the greater of par or cost, as unbelievable as that is. Stocks are a different story. They are marked to market daily. And it is important because that capital ratio tells you how much insurance you can write.