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December 21, 2011, Featured Articles, News, Research

Fitch calls U.S. life industry “stable,” but notes concerns

By Editorial Staff   Mon, Dec 19, 2011

"The industry’s large in-force book of variable annuity business will continue to be a drag on profitability over the near term," the ratings agency said in a recent bulletin.

In a new bulletin, “2012 Outlook: U.S. Life Insurance,” Fitch Ratings calls industry “stable,” but “expects positive trends in industry earnings performance and investment results reported in 2011 to be pressured in 2012 due to the low interest rate environment, increased hedging costs, and ongoing market volatility.”

Among other things, the bulletin said:

  • Fitch expects that the industry’s large in-force book of variable annuity business will continue to be a drag on profitability over the near term...

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