...Source of Liquidity for Insurers with Limited Capital Market Access Membership in the Federal Home Loan Bank (FHLB) system can enhance liquidity and financial flexibility for property/casualty (P/C) insurance companies, particularly those with limited access to the capital markets. Members are typically mutual companies or have relatively small policyholders' surplus (PHS). Three exceptions include The Hanover Insurance Company, Meadowbrook Insurance Group and Selective Insurance Group, with public holding companies with access to the corporate debt markets. Rapid Growth in FHLB Borrowings P/C insurers' use of the FHLB system has grown rapidly in recent periods. Borrowing increased almost 65% to $1.7 billion at Dec. 31, 2013 and increased another 5% in the first three months of 2014. Use of the FHLB system remains more popular for life insurers, however, which account for about 60% of the 118 total insurer members and 97% of total borrowings of $59 billion at Dec. 31, 2013. Use of Funds...
