U.S. Insurers’ Derivative Exposure Increased 9% in 2018
by Jean-Baptiste Carelus of the NAIC
"In this special report, U.S. insurer derivative exposures are represented by the notional value, which is the
nominal or face amount of a financial instrument that is used to calculate payments made on that instrument.
Notional values are not indicators of true economic exposure, but they serve as a more consistent indicator of
market activity and scale than the book/adjusted carrying value (BACV) or the fair value (FV), both of which can be
affected by factors such as market prices and accounting treatment."