NYPPEX Report: Net Liquidity for Capital Calls Varies Widely Among Insurance Companies

2009-11-20 00:18:05 -

NYPPEX, a leading global secondary private market advisory, trading and research firm for illiquid assets released to customers its report Net Liquidity for Capital Calls Varies Widely Among Insurance Companies (the “Report”).

Each quarter, NYPPEX measures investors’ ability to make capital calls to limited partnerships based on net liquidity balances and without reliance on capital market conditions for sales of marketable

securities and/or debt issuance.

NYPPEX found that Net Liquidity to Unfunded Commitment ratios varied widely among insurance companies from a low of -81.5x for CNA Financial Corp. to a high of 15.6x for American International Group, Inc. as of September 30, 2009.

The Report estimates that insurance companies worldwide experienced a 49% decline on average in Net Liquidity to Unfunded Commitment ratios to 2.02x as of September 30, 2009 versus 3.97x as of September 30, 2008.

NYPPEX defines Net Liquidity as Cash + Cash Equivalents + Accounts Receivable - Accounts Payable. Unfunded Commitments are defined as unfunded liabilities to limited partnerships and pooled investment programs.

Insurance companies with the largest declines in Net Liquidity for the 1 year period ended September 30, 2009 were Allstate Corp. (-54.9%), MBIA, Inc. (-30.0%) and American International Group, Inc. (-27.7%). Insurance companies with the largest increases in Net Liquidity during the period were Genworth Financial, Inc. (138.6%), Lincoln National Corp. (96.0%) and Liberty Mutual Holding Co., Inc. (4.2%).

Although Net Liquidity declined on average for the selected insurance companies, the Report states that investment portfolio market values increased approximately 9.5% on average versus -9.4% for the S&P 500 Index during the 12 month period ended September 30, 2009.

Insurance companies analyzed in the Report included: American International Group, Inc.; MetLife, Inc.; Genworth Financial, Inc.; ACE Ltd.; Lincoln National Corp.; MBIA, Inc.; Allstate Corp.; Liberty Mutual Holding Co., Inc.; The Travelers Companies, Inc.; and CNA Financial Corp.


For a full copy of the report, please sign up for a free trial subscription to the NYPPEX Secondary Private Market Research and Data service by clicking here : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. or visiting the NYPPEX website at www.nyppex.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .



About NYPPEX

NYPPEX is a global securities firm specializing in secondary private market advisory, trading, principal investments and research for illiquid asset classes. The Company provides access to private market liquidity for interests in private funds (e.g. buyout, venture, natural resources, real estate, hedge funds, fund of funds etc.), unregistered equity and debt related securities in private companies and receivables.

NYPPEX is recognized by the U.S. Internal Revenue Service as a Qualified Matching Service for private partnerships under IRS §1.7704. The NYPPEX IPL Private Trading System™ matches buy and sell orders, anonymously and at low transaction cost. Its services are provided to private funds, private companies, governments, financial institutions, corporations, advisors and high net worth private clients. www.nyppex.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..

NYPPEXMaryAnn Sapione, 203-422-5000 x220Vice President of
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