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Old 12-07-2018, 11:15 AM
Noonien Soong Noonien Soong is offline
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Default unaffiliated vs affiliated invested assets

Is there such a thing as "affiliated" assets? I know most insurers invest in Bonds, securities, real estate, etc, and that the sum total gets the label "non-affiliated invested assets" on financial statements.

Is there such thing as an "affiliated" invested asset? Or is that just when an insurer takes some extra capital from earnings for example, and pays it to their staff in a bonus(now and expense) or invests in new technology or larger teams (also an expense)

Really, I'm just hung up on the name, it seems like any and all outside the company(or group of parent/child/affiliated companies) investments would be "non-affiliated", so why is the label "non-affiliated" necessary?

humanly,

Noonien Soong
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Old 12-07-2018, 12:13 PM
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Originally Posted by Noonien Soong View Post
Is there such a thing as "affiliated" assets? I know most insurers invest in Bonds, securities, real estate, etc, and that the sum total gets the label "non-affiliated invested assets" on financial statements.

Is there such thing as an "affiliated" invested asset? Or is that just when an insurer takes some extra capital from earnings for example, and pays it to their staff in a bonus(now and expense) or invests in new technology or larger teams (also an expense)

Really, I'm just hung up on the name, it seems like any and all outside the company(or group of parent/child/affiliated companies) investments would be "non-affiliated", so why is the label "non-affiliated" necessary?

humanly,

Noonien Soong
Google affiliated company. Affiliated assets are stocks or bonds of companies affiliated with the insurer whose statement they are listed on.
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Old 12-07-2018, 02:25 PM
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Many times these "investments" are to move capital around affiliated entities, as opposed to looking for investment return (as with unaffiliated assets).
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Old 12-08-2018, 10:55 AM
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What accounting basis?

There are some affiliated assets in GAAP. A typical affiliated asset in GAAP is a minority ownership stake that gives some control, but not complete control.

Stat is legal-entity based, not enterprise based. That means it has many more affiliated assets, since all the other companies that would consolidate under GAAP are held as affiliated assets under stat.
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