Hybrid Securities

Committees/Task Forces/Working Groups

• Hybrid RBC Working Group
• Capital Adequacy Task Force
• Valuation of Securities Task Force

Hybrid securities are investments structured to have characteristics of both equity (common and preferred stock) and debt. The classification of these securities is of great importance to insurers because, when a hybrid security is determined by the SVO to be equity rather than debt, the insurer will face substantially higher risk-based capital charges.

For a list of current Classification Determination Reports and the SVO's Statement on Classification Analysis go to the Securities Valuation Office Web page.