Fitch Releases Special Report on U.S. Life Insurers’ Net Investment Income
In this report, Fitch analyzes key drivers and trends of life insurers' investment performance between 2010 and 2014. The report compiles data from life insurers in Fitch's debt rating universe as well as the overall life insurance industry.
Bond yields have declined during the four year period ending 2014, due to the prolonged low interest rate environment. Life insurers have traded liquidity for yield over this period by modestly extending the duration of their portfolios and shifting from public to private bonds. Additionally, companies have increased their exposure to Schedule BA assets.
The overall asset risk for the industry remains adequate, despite changes in the portfolio makeup. Over the next 12-18 months, Fitch expects a continued decline in life insurers' portfolio yields.
The full report 'U.S. Life Insurers' - NII' dated
Additional information is available at 'www.fitchratings.com'.
--'Insurance Rating Methodology' (
U.S. Life Insurers' NII Dashboard
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870229
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Insurance Rating Methodology (pub.
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868367
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