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NTERVIEW
<br /> a, WITH KEYPORT'S INVESTMENT CHIEF
<br /> Keyreporfer recently asked Paul LeFevre,
<br /> : Keyport Senior Vice President and CFO,
<br /> to address some important investment
<br /> management questions.
<br /> ROBERT G. SHARP
<br /> PRESIDENT, CEO
<br /> The"Fat Man Turns Fifty"article What do you believe is Keyport's most we use sophisticated asset-liability
<br /> y.}..
<br /> featured in this Keyrepa►teroffers ; important commitment to the Com- matching techniques.. These tech-
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<br /> a refreshing glimpse at some of g' pany's policyholders?' niques have led us to maintain a rela- _
<br /> the exciting new challenges F '• . tively short option-adjusted asset
<br /> America's scientists at Los Alamos 'j Our primary responsibility is to man-. .; duration in our portfolio — which :!
<br /> National Laboratory are tackling -4 ',age�the Company to.ensure we will be '_ means we will be better able to pro-
<br /> in the wake of the Soviet Union's , ' able to keep the". we have vide competitive renewal crediting y
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<br /> collapse. I hope you enjoy read- ; made to.our policyholders ;To accom r iate"s interest rates change in the
<br /> 5 'E!
<br /> ing about some of America's k_ push.this we carefully manage our future. e
<br /> emerging scientific and technaw:, investments and the rates.we pay`ony�: .< x,;
<br /> logical breakthroughs. contracts to maximize returns for r;,°How;iinportarrt are insurance company `i
<br /> policyholders without jeopardizing the ,ratings? t" + ,
<br /> At Keyport, we monitor new Company's solvency ; .
<br /> technological developments to , ; 'r , 'Keyport takes its ratings seriously since
<br /> identify ways that will help us51
<br /> , What"a a the ' or,factors.you eonsid , 'ratings are a public sourci,of infQrma-
<br /> build upon our reputation for s? ;,,erin managing Keyport's investments? tion about'insurarece company finan-
<br /> uali service. In{act Keyport r " a °<�^' ° �" ` ` r -quality ypo F 4�.� ^r ti , � , 5, n .:r ctal`strength:, We believe our.strong
<br /> was a pioneer among life insur- �iiThere are really three key technical --a--ratings reflect Keyport's sound finan-
<br /> ante companies when we Ufa�Y �#actors the quality of our investments, ciai'condition, and:recommend that '
<br /> replaced our traditional main- rrthe liquidity of ourkinvestments, and ;,,policyhoidcrs•.read the informative rat- r .
<br /> .;
<br /> frame computer systems with arthe sensitivity of the overall:portfolio :ing agency comments that se,pport all
<br /> cost-efficient personal computer �.i. o changes m interest rates ' �"+ xa pfti insurance company ratings. Rating
<br /> based network system. Keyports °tom ` agency assessments of insurancexcom-
<br /> new computer system has £=HoW has Keypor&address0'tlie invest I� 'panies'are available at moss t public
<br /> reduced operating costs and Lmentqua(rtyissue�� ¢ , � yz
<br /> 4 4f0k•4 �! �• `,F
<br /> expanded the services we can ' � i�i y� "� "' y r � r" 'e{s �4 ,z
<br /> We have avoided real estate and wee q G ��
<br /> provide. For example,in a matter ,. r ,.at � n�E
<br /> have a very small commitment to tom
<br /> of seconds we can now project _ M i r.
<br /> what our Keyport single re- mercial mortgages because of liquidity
<br /> mium deferred annuity gontpract and credit concerns We`manage-the ',
<br /> will be worth on any future date portfolio so the averageStandard & rt�_
<br /> in your present contract year. l�oor'sand Moody's rating of'our bond ' .
<br /> holdrngs is above "A^.�A�elativeiy�,,.
<br /> As this edition of Keyreporter was smallportion of or r in a finents`—
<br /> bein fess`tlan 8%`ems in`below intnie trh
<br /> g prepared, we were ?�;. a
<br /> informed that Keyport has once grade=bondsahat have beenpcarefullyg
<br /> again received an A+(Superior) selected to provide incremental,yield. '=
<br /> rating from A.M. Best Company fr rOPP ,
<br /> 2 We are proud of Keyporrs favor- whY "S.tNL s�ennsi qqy,off tify t�
<br /> able ratings from each of the portfolio to.rnterest.rate changesso :
<br /> leading independent insurance {rmpohant?�� f�� ,I
<br /> ..„s�
<br /> company rating agencies. .�;�.L „� . � ,, t�•� ;��: , '
<br /> Ai
<br /> To remain competitive we need to lie r;
<br /> Sincerely, a.position to increase theiyates paid..'W4 , = '
<br /> 9 onour contracts ifgener_al interest .
<br /> rates Rse T�ius, our;portfolio must i + }�� rµ�4
<br /> 8ener ite more investment earnings as � � s� PAUL
<br /> SENIOR VICE PRESIDENT AND CFO
<br /> Bob Sharp it ra#es rise 0 accomps ;
<br /> �'' intere - Tlih this §y � � � � 4 z k � .,�
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