LBL Investments
Liberty Bankers maintains a diversified investment portfolio comprised of fixed income securities (which includes bonds and preferred stocks), commercial mortgage loans, real estate and short term cash equivalents. In order to offer our customers competitive rates and a secure investment portfolio, we maintain a blended portfolio of varying asset classes that provides the greatest long term security and diversity. With a proper balance of financial and tangible assets, our portfolio is positioned to perform well during times of economic stagnation as well as sustained economic growth.
Securities Credit Quality as of December 31, 2007
Two thirds of our assets are in invested in fixed income securities and preferred stock with an average credit quality of A+. With fixed income standards evolving on a daily basis, we do more than rely on a rating agency’s evaluation when considering an investment by conducting our own in depth analysis. Over the last several years, credit standards in collateralized mortgage obligations have loosened dramatically and have generally resulted in greater credit risk. We have consciously avoided investment in areas of the country that we believe are suspect in preference to more favorable geographic regions.
Twenty two percent of our portfolio is in commercial mortgages that are underwritten internally. Our commercial mortgage portfolio has a diverse geographic dispersion with some concentration in the Southwest which benefits from favorable demographic trends. Our commercial mortgages are underwritten at conservative loan to value ratios and provide additional yield to the portfolio.
The balance of the portfolio is spread among real estate holdings, cash equivalents, and other miscellaneous items such as contract loans. We have minimal holdings with sub-prime exposure in our collateralized mortgage obligations. The majority of our sub-prime holdings are insured against losses of principal and interest. All of our holdings are in the senior tranches of the CMOs pools and currently we do not anticipate any significant impairment to our CMO holdings.
Liberty Bankers Life is committed to provide security, stability and peace of mind to each annuity and life insurance purchaser. It is our goal to build a lasting relationship with each client that places their trust in Liberty Bankers and to help provide financial security in their retirement. This begins with a conservative, balanced investment portfolio and continues with personalized service that caters to each clients’ individual needs.
