Common use of Matching Clause in Contracts

Matching. To minimize interest rate risk, we embrace the basic principle that for each portfolio, duration and, if applicable, cash flow must bear a known relationship to the corresponding characteristics of life insurance and savings product liabilities. The duration of each portfolio must be maintained within the range established by FSI-NA and may not exceed target duration by more than one year. The asset/liability relationship will be monitored and documented on a regular basis. Only fixed-income securities and commercial mortgages are authorized for liability matching unless general account liabilities are linked to equity performance. Common stock, real estate and other equity investments are permissible in surplus portfolios and are to be excluded from duration of fixed income assets. All assets should be either denominated in or swapped into the currency of the liability to be consistent with our matching philosophy.

Matching. To minimize interest rate risk, we embrace the basic principle that for each portfolio, duration and, if applicable, cash flow must bear a known relationship to the corresponding characteristics of life insurance and savings product liabilities. The duration of each portfolio must be maintained within the range established by FSI-NA and may not exceed target duration by more than one year. The asset/liability relationship will be monitored and documented on a regular basis. Only fixed-income securities and commercial mortgages are authorized for liability matching unless general account liabilities are linked to equity performance. Common stock, real estate and other equity investments are permissible in surplus portfolios and are to be excluded from duration of fixed income assets. All assets should be either denominated in or swapped into the currency of the liability to be consistent with our matching marching philosophy.

Matching. To minimize interest rate risk, we embrace the basic principle that for each portfolio, duration and, if applicable, cash flow must bear a known relationship to the corresponding characteristics of life insurance and savings product liabilities. The duration of each portfolio must be maintained within the range established by FSI-NA and may not exceed target duration by more than one year. The asset/liability relationship will be monitored and documented on a regular basis. Only fixed-income securities and commercial mortgages are authorized for liability matching unless general account liabilities are linked to equity performance. Common stock, real estate estate, and other equity investments are permissible in surplus portfolios and are to be excluded from duration of fixed income assets. All assets should be either denominated in or swapped into the currency of the liability to be consistent with our matching philosophy.