nonbankthriftinstitutions∶savingsloanassociations(编辑修改稿)

nonbankthriftinstitutions∶savingsloanassociations(编辑修改稿)内容摘要：

e mutuals.  P/C insurance is a riskier business than life insurance – P/C claims are less predictable and inflation has a potent impact.  Moreover, the P/C risk patterns appear to be changing. For example, there has been a rapid rise in product liability claims.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 29 PropertyCasualty (P/C) Insurance Companies Source: Board of Governors of the Federal Reserve System 17  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 30 PropertyCasualty (P/C) Insurance Companies  Like life insurance firms, P/C insurers plan to break even on their insurance product lines and earn most of their return from their investments.  However, achieving the breakeven point is difficult. In fact, P/C insurers have experienced billions of dollars in underwriting losses in recent years.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 31 PropertyCasualty (P/C) Insurance Companies  The earnings and sales revenue of the P/C insurance industry reflect the ups and downs of the business cycle.  Moreover, inflation pushes up the cost of claims, while intense petition holds premium rates down.  To improve their future situation, P/C insurers must bee more innovative in developing new services.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 32 Finance Companies  Finance panies grant credit to businesses and consumers for a wide variety of purposes, including the purchase of business equipment, automobiles, vacations, and home appliances.  As such, they are sometimes called department stores of consumer and business credit.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 33 Finance Companies  Consumer finance panies make personal cash loans to individuals, such as home equity loans and loans to support the purchase of passenger cars and home appliances.  Sales finance panies make indirect loans to consumers by purchasing installment paper from dealers selling consumer durables.  Commercial finance panies focus mainly on extending credit to business firms.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 34 Finance Companies  Finance panies are heavy users of debt in financing their operations.  The lack of an extensive work of branch offices has put many finance panies at a disadvantage.  The number of finance panies is on the decline, although their average size has grown considerably.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 35 Other Financial Institutions  Security dealers “take a position of risk” in securities. They trade in securities with the expectation of earning a profitable spread.  Investment bankers assist businesses and governments in issuing debt and stock.  Venture capital firms provide longterm capital financing for new businesses and rapidly emerging panies.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 36 Other Financial Institutions  Mortgage banks work with other businesses on real estate development projects and sell the resulting loan instruments to other investors.  Real estate investment trusts (REITs) fund mercial and residential real estate projects.  Leasing panies purchase business equipment and other assets and then lease them in return for rental fees.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 37 Trends Affecting All Financial Institutions Today  There are several major trends affecting virtually all financial institutions today:  increasing cost pressures  consolidation  service diversification and homogenization  convergence  technological revolution  global petition  regulatory cooperation and harmonization  deregulation  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 38 Money and Capital Markets in Cyberspace  Mutual funds are discussed at and  More information on pension funds can be found at and  Websites for the insurance industry include and  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 39 Money and Capital Markets in Cyberspace  Visit some finance panies and investment banks like and  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 40 Chapter Review  Mutual Funds (Investment Companies)  The Background of Investment Companies  Tax Status of the Industry  OpenEnd and ClosedEnd Investment Companies  Goals and Earnings of Investment Companies  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 41 Chapter Review  Pension Funds  Growth of Pension Funds  Investment Strategies of Pension Funds  Pension Fund Assets  Factors Affecting the Future Growth of Pension Funds  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 16 42 Chapter Review  Life Insurance Companies  The Insurance Principle  Investments of Life Insurance Companies  Sources of Life Insurance Company Funds  Structure and Growth of the Life Insurance Industry  New Services  2020 by The McGrawHill Companies, Inc. All rights reserved. McG。