A-CAP Management believes Liquidity Risk is the best risk for insurers to take as Insurance assets and liabilities are not marked to market for capital charge purposes (other than if an impairment is required), Insurance liabilities have longer average lives than assets typically, and some portion of the insurance company will be in liquid assets should cash need to be raised (~20%). In today’s environment, interest rate asset yields are less than liability yields, making interest rate risk a bad risk for insurance companies to take on. Credit risk is a bad risk for insurance companies to take as defaults cannot be planned for and are always realized losses to surplus.

There are several regulatory constraints placed on an insurance company’s investment capabilities. A-CAP Management executes specific investment strategies in order to satisfy these constraints.

Pre-funding a funeral is setting aside money today so that the money will be there when you need it. It is especially important since funeral expenses, like everything else, increase over time. But if you have pre-funded, many funeral homes will actually lock in today’s prices on many goods and services you select. That way, your family may have little or no additional expense when the time comes to carry out the prearranged funeral services.