Despite pressures from the sluggish economic recovery and low interest rates, the U.S. life insurance sector remains financially strong, characterized by high levels of capitalization, solid liquidity, high-quality investment portfolios, good financial flexibility and modestly improved profitability, according to Moody's Investors Service.

In its report, "U.S. Life Insurance — Industry Scorecard," Moody’s said the still-low interest rate environment will continue to compress spread margins for fixed annuities and universal life insurance, and pressure profits from long-tailed liabilities such as disability income, long-term care, payout annuities and variable annuities (VA) with guarantees.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access