Outlook for life insurers is ‘credit negative’ thru mid-2018

January 3, 2017 by Warren S. Hersch

Continuing low interest will put a damper on life insurers’ investment yields and guaranteed rates of return in 2017, depressing their earnings, solvency position and credit outlook, which dipped from “stable” to negative during the year past.

The carriers’ credit and investment outlook may not improve until at least the second half of 2018.

So reports Moody’s Investors Service in its “2017 Global Life Insurance Outlook” report. The study examines the effect of macroeconomic and business factors on insurers’ balance sheets, including continuing low interest rates, market volatility, and legislative changes.

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Originally Posted at LifeHealthPro on December 6, 2016 by Warren S. Hersch.