Press Release - DECEMBER 10, 2019
Best’s Market Segment Report: U.S. Life/Annuity Insurance Market Outlook Held at Stable
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 10, 2019
A new Best’s Market Segment Report, “Market Segment Outlook: US Life/Annuity,” states that L/A insurers are recording modest but stable operating performance, and are continuing to benefit from favorable equity and credit markets, which have somewhat offset the persistent low interest rate environment. As a result, they have been able to build up their capital over time despite the net deferred tax asset hit many companies took due to U.S. tax reform. Going forward, insurers will need to continue strengthening their capital to absorb the effects of changing economic and regulatory environments. The long-running benign credit environment cannot last indefinitely, and future credit issues will lead to ratings transitions and the need for additional required capital. Upcoming elections and macro-economic events can drive significant changes in market temperament. A meaningful shift back to more industry regulation, whether at the state or federal level, would not benefit L/A carriers.
The report outlines other factors that are driving the stable market segment outlook, including as follows:
To access a full copy of the overall L/A market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=292331 .
To view a video with Ken Frino, managing director, about the U.S. L/A industry outlook, please visit http://www.ambest.com/v.asp?v=outlooklifeannuity1219 .
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.