Name Some Major Differences in (A) the Portfolios of Life

question 22

Essay

Name some major differences in (a) the portfolios of life companies and P&C companies, and (b) investment strategy between public (or stock) and mutual insurance companies of the same type.

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Definitions:

Tax Benefit

A financial advantage that results from specific tax laws or regulations, allowing for reductions in tax liability.

Avoidance

A legal principle that allows a party to cancel or annul a contract under certain conditions.

Profit Distributions

The allocation of a portion of a company's earnings to its shareholders, typically in the form of dividends or share buybacks.

De Facto Corporation

A business operating as if it were a legally incorporated company, despite not having completed the formal incorporation process, and is often treated as such by the law under certain conditions.