asset share

Discussion in 'SP2' started by inbal, Sep 22, 2010.

  1. inbal

    inbal Member

    can someone please explain, why when interest rate rise asset share fall?
     
  2. Hi inbal
    An asset share is a policy's share of the insurer's actual assets. When interest rates (yields on assets) rise, this implies directly that the market values of the assets have fallen. So the value of each policy's share of the assets will fall too.

    Does that help? Good luck!
     
  3. inbal

    inbal Member

    Thank you very much
     

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