Can you expain this “Underwriting cycles affect the mix of taxable and tax-exempt bond holdings. Because the tax-exempt yield curve in the US tends to be more positively sloped than the taxable curve, casualty companies find that that they must invest in longer maturities (15-30 years) than the typical life insurance company to optimize the yield advantage offered by tax exempt securities”
Underwriting cycles affect the mix of taxable and tax-exempt bond holdings - you want to get a tax credit buy rotating into taxable 