World News: 14:28 GMT Friday 7th December 2018. [AM Best via Businesswire via SPi World News]
AM Best has revised its market segment outlook for the U.S. life/annuity (L/A) industry to stable from negative for 2019, citing increased profitability, improved regulatory and tax environments and a strengthening U.S. economy, along with overall reduced balance sheet risk due to a proactive approach taken by companies in recent years.
A series of Best’s Market Segment Reports includes a discussion of AM Best’s outlook revision and views on the entire L/A industry, as well as the individual life insurance and annuity segments. Overall, the stable outlook reflects the improved risk-adjusted capitalization and liquidity of L/A industry participants. Although volatility ratcheted up in the second half of 2018, AM Best expects the equity markets and interest rate movements to be net positives for operating performance. Business profiles in general are stronger, as companies continue to focus on core business lines and make use of alternative risk transfer mechanisms to shed risk. Enterprise risk management programs also continue to evolve to further identify and manage current and evolving risks.
The market segment reports outline other factors that are driving the outlook revision, including the following:
To access a full copy of the overall L/A market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=280726.
Separate market segment reports on the life and annuity segments can be viewed at:
For a video with Ken Johnson, senior director, about the U.S. L/A industry outlook, please visit http://www.ambest.com/v.asp?v=lifeannuityoutlook1218.
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 © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Business Wire: 14:28 GMT Friday 7th December 2018
SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2018. [Admin Only]
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 0751938.