Insurers Fear Toxic Backsplash

Just as one man’s trash is another’s treasure, one company’s toxic asset may be another’s performing asset.

That’s the fear of The Group of North American Insurance Enterprises (GNAIE), an association that represents eighteen large insurance companies including life insurers, property/casualty insurers, and reinsurers. The Obama administration is soon expected to announce a plan to value toxic assets, and GMAIE is urging the administration not to use fair value accounting standards to do so.