Below is a message from Jason Doiron, EVP and Chief Investment Officer, regarding the recent events surrounding Silicon Valley Bank.
As I’m sure you’ve heard, Silicon Valley Bank, the 16th largest bank in the United States, failed after a run on its deposits forced the FDIC to place the bank into receivership last Friday. Please note that the Bank’s failure has no material impacts on National Life Group or our ability to meet our obligations to our policyholders or associates.
In particular, I’ve listed below some key highlights that I want to share:
- Silicon Valley Bank is unique in terms of its highly concentrated depositor-base (comprised largely of venture capital related firms);
- National Life Group has a small debt position in the Bank – our exposure to Silicon Valley Bank is immaterial and very limited relative to our overall AUM;
- We remain very well positioned to handle any volatility that we may encounter related to its failure; however, others in the insurance industry, including some peer companies, have a greater amount of exposure;
- We continue to monitor the situation to ensure that we deliver the best possible outcome for NLG and our policyholders; and
- Our 401k and pension plans are not impacted.
Again, we will closely monitor the situation and work through this as we learn more, and make any adjustments if necessary.