Moody’s downgrades U.S. life insurance outlook to ‘negative’

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

Moody’s downgrades U.S. life insurance outlook to ‘negative’

Low interest rates, weakening credit, coronavirus pandemic economic disruption drive outlook change.

Continue reading the Original Article.

 

[marindependent]

I think this downgrade is a wake up call that all might not be well with the life insurance industry during these new times. The article really only begins to touch of significant issues moving forward.

 

[Allen Trent]

I wonder if you will see life insurers having to start investing some surplus in other non insurance business operations that have better profit margins. If I recall, Mass Mutual did very well when they owned Oppenheimer Funds, thus creating great dividends for their WL clients

 

[jboussea]

I wonder if you will see life insurers having to start investing some surplus in other non insurance business operations that have better profit margins. If I recall, Mass Mutual did very well when they owned Oppenheimer Funds, thus creating great dividends for their WL clients

don't they do that already? .. I think they've been seeing the writing on the wall with the low interest rates before the pandemic...

 

[Allen Trent]

don't they do that already? .. I think they've been seeing the writing on the wall with the low interest rates before the pandemic...

I would hope so, but the bulk of what I have seen over the years is either ownership of other Life insurance subsidiaries or just their normal portfolio of bonds, some stocks & commercial mortgages. I had not seen a great deal in terms of ownership(other than holding stock) in other non insurance business operations.