Life Premiums Expected To Rise In 2013 And 2014
January 24, 2013 by William T. Knight
LONDON, January 16, 2013 /PRNewswire/ —
StockCall research team has posted free technical analyses on
companies mentioned in this release. These can be accessed at
http://www.stockcall.com/register
Companies in the life insurance industry could be in for a solid 2013,
as life insurance premiums are predicted to rise both this year and
next. Globally, life insurance premiums are projected to increase by
approximately 3%, according to a recent Swiss Re study. Several
companies in the industry like, MetLife Inc. (NYSE: MET) and Genworth
Financial Inc. (NYSE:GNW), have also been taking steps to improve
their businesses by divesting non-core assets, growing their presence
abroad and securing top executives to head up operations. See how the
following companies, Genworth Financial Inc.(1), MetLife Inc.(2) and
Prudential Financial Inc.(3), which are in the Life Insurance industry
have been performing over the past years and how they are expected to
perform in 2013. Sign up now for free at
http://www.stockcall.com/register
MetLife’s recently completed the sales of its bank deposits for $6.4
billion. This move follows the company’s move away from the home loan
segment last year as MetLife continues to recalibrate to its core
insurance business. MetLife will be releasing its Earnings report on
February 13th, 2013.
Genworth Financial has also been selling non-core holdings with the
aim of refocusing on its core business. The company has been
considering alternatives for two of its non-core businesses which
include an international division that offers lifestyle protection
insurance. It is planning to boost this business value with the
objective of selling it in the next few years.
Asia and Latin America have been a specific focus for a number of life
insurance companies of late, as countries such as India and Brazil
offer great growth potential. A lack of health protection for many
individuals combined with a growing affluent population in the
aforementioned countries is fuelling demand, and those that can
service that demand could see sales and profits rise.
While the industry looks poised for a solid year, there are a number
of industry specific challenges. Competition in the industry remains
spirited, and with interest rates remaining low, returns on funds held
have been an issue for some like Prudential Financial Inc. (NYSE:
PRU). That being said, a recovering economy in the U.S. coupled with
strong foreign demand could lead life insurers higher this year.
