There were no ratings changes of note this month but there is plenty of activity around the public debate of financial services reform. Though much of the discussion is focused on banking, major life insurance companies will probably be impacted and quite often such changes can impact the competitive positioning of a company's products. We will continue to listen carefully.
We have recently worked in two different businesses reviewing existing key person life insurance. As you probably recognize, the loss of a key person can be devastating to a business when the revenues and client relationships are dependent on that individual. Life insurance can certainly be an appropriate way, perhaps even the only way, to cover that risk. However, we continue to find that life insurance is often purchased appropriately but then is all too often ignored or forgotten. In one company some of the key individuals were no longer with the company. For another the risk had diminished greatly though not entirely. In both situations, the lack of attention to these valuable assets have resulted in lost value to the company.