BOLI yields fell 14 basis points from Q2 to 3.52% on an annualized basis, still ahead of full-year results in 2008.*

BOLI Table

 

Total reported BOLI resumed its slide in Q3 2009. The Q3-08 total of $126.5 billion is the high water mark since mandatory reporting began in 2006.

BOLI Chart

 

*EBA Composite BOLI Index™ uses reported BOLI income or changes in reported BOLI asset to estimate yield. An adjustment for the impact of BOLI new purchases, surrenders, and death benefit income is made by excluding reported BOLI income or BOLI assets in instances where reported income or change in asset shows an increase or decrease in a quarter in excess of 7% on an annualized basis. When change in reported BOLI asset is used, a factor is added to account for cash value attrition due to deaths, equal to the average over the five years ending with the current quarter of the difference between reported BOLI yield and change in BOLI asset for banks that reported (i) BOLI income in the current quarter, and (ii) a smaller amount of increase in BOLI asset in the quarter than the amount of (i). All individual yields are dollar weighted.

Quarterly results are annualized.

 

  

Subscriptions

EBA BOLI Asset and Yield Analysis and EBA Peer Analysis are designed to provide independent analysis supporting banks’ compliance with regulatory guidance for the risk management of BOLI.

EBA offers one-year subscriptions and customized Peer Analysis for individual banks.  Subscriptions and Peer Analysis are published/updated quarterly.

BASIC SUBSCRIPTION to EBA BOLI Asset and Yield Analysis ............. $250.00
Includes:

  • EBA Composite BOLI Index™ and all sub-indices for current quarter and historically to 2004
  • Discussion of BOLI Asset and Yield data and trends
  • Appendix with reported BOLI assets and reported BOLI income for each bank in top 2,000 by size

BASIC SUBSCRIPTION with SMALL BANK SUPPLEMENT .................. $350.00
Includes:

  • All items in the Basic Subscription, plus
  • Supplemental Appendix with reported BOLI assets and reported BOLI income for each bank below the top 2,000 (approximately 6,000 banks), listed alphabetically

Historical data to Q1 2004 for basic and supplement subscription is available; price upon request.

PEER ANALYSIS ............................................................................. $595.00

  • Support for BOLI Risk Management Review under FIL-127 (2004)
  • Comparison of your bank’s BOLI data against your peer banks, customized by state and asset size
  • Ratio of BOLI asset to regulatory capital for each bank in peer group


Click here to print a copy of the order form. Please fill it out and mail it with your check to:

Effron Burke Associates, LLC
840 Mill Hill Road, Suite 200
Southport, CT 06890

 

 

¹ FIL-127 (2004), Interagency Statement on the Purchase and Risk Management of Life Insurance