Insurance companies never know the exact amounts of their future payouts. So, why do they hold large

Question:

Insurance companies never know the exact amounts of their future payouts. So, why do they hold large amounts of long-term, relatively illiquid assets, such as corporate bonds, that may be difficult to sell quickly if they need to make payments to policyholders?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: