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Ratings agency warns about becoming dependent on offshore reinsurers

A financial ratings agency has warned direct writers of U.S. individual life insurance policies about relying too much on offshore reinsurers.
U. S. insurers are “becoming increasingly reliant on offshore reinsurance to transfer off of their balance sheets the growing reserve strains associated with statutory reserve requirements” stated Moody’s Investors Service in a press release on January 15, 2004 to announce a new report on the subject.