Reuters: Regulatory News: NY state regulator seeks details on captive insurers - WSJ

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NY state regulator seeks details on captive insurers - WSJ Aug 6th 2012, 09:29 Mon Aug 6, 2012 5:29am EDT Aug 6 (Reuters) - New York state's top financial regulator is investigating whether life insurance companies are concealing details about their financial health by shifting liabilities to affiliated firms, the Wall Street Journal reported. The New York Department of Financial Services has sent letters to 80 insurers, including market leader MetLife Inc , seeking details about their financial arrangements with related firms known as captive insurers, the newspaper said, citing people familiar with the investigation. Captive insurers, many of which are incorporated offshore or in other states, are established to insure risks taken on by their parent but sometimes also insure the group's customers. The department, which has given the insurers a Wednesday deadline to provide the information, is concerned that some companies may be shifting significant liabilities to these entities, which may have laxer funding requirements than New York-regulated companies, the newspaper said. The letters were sent in mid-July, the Journal said. Officials from the department and MetLife could not immediately be reached for comment by Reuters outside of regular U.S. business hours. Metlife said in statement to the Journal that its captive insurer arrangements met regulatory requirements. The investigation is part of a broader state effort to unmask any attempts to camouflage insurance industry solvency standards, the newspaper said. Link this Share this Digg this Email Reprints

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