Best’s Market Segment Report: U.S. Life/Annuity Insurers Buoyed by Stable Outlook, But Clouds Loom on Horizon
The Best’s Market Segment Report, titled, “U.
The L/A industry’s statutory pretax operating earnings were favorable through third-quarter 2018 at
Capital and surplus has grown to just
The life insurance segment continues to build up its balance sheet, strengthened by improvements in risk-adjusted capitalization and enterprise liquidity. Overall asset allocations remain consistent, with bonds at 73%; commercial mortgage loans at 12%; Schedule BA (non-traditional) at 6%; policy loans at 3%; public equities at 3%; and other holdings at 3%. However, these statistics mask an ongoing trade-off in liquidity, as investment-grade corporate bonds were exchanged for either collateralized loan obligations or private placements.
At this point, AM Best believes the industry may feel some capital or liquidity pain in its investment portfolios owing to negative rating migrations rather than mass impairments stemming from failing sector impacts. Separately, companies with expertise in classes such as commercial mortgage loans, or those working with third-party managers with that expertise, will likely fare better than those that do not.
To access a copy of this market segment report, which also includes a look at the regulatory issues impacting the L/A industry along with outlooks on individual L/A sectors, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=283196.
To view a video interview with Managing Director
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190228005502/en/
Senior Director
+1 908 439 2200, ext. 5056
[email protected]
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]
Source: AM Best
Medicaid expansion gets push in Senate
SICK TRUCK DRIVER INVESTIGATION: Truck Safety Attorneys Applaud Federal Audit
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News