(Reuters) – The U.S. securities regulator has asked life insurers to disclose the potential cost of forcibly winding down in-house insurance units known as 'captives,' whose business model has come under regulatory radar, the Wall Street Journal reported.
State insurance regulators, which approve these captive units, have previously raised concerns that some companies may be covering up their financial health by moving business to such related entities, the daily reported.
Insurers that have been in touch with the Securities and Exchange Commission (SEC) on this matter include MetLife Inc , Genworth Financial Inc, Hartford Financial Services group Inc, Protective Life Corp and Reinsurance Group of America, the Journal reported, citing regulatory filings and people familiar with the matter.
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