Moody's 2013 global outlook for insurers a negative
January 31, 2013 by Michael K. Stanley
Moody’s Investor Service (Moody’s) outlook for life insurers in 2013 is negative due to the continuous low interest rate environment and anemic economic growth.
Interest rates — both in the U.S. and around the world — will remain historically low for near future. Life insurers have, for the most part, been able to insulate themselves from the immediate adverse effects of the low interest rate environment because their investment portfolios turn over slowly and their management teams have taken action in the form of lowering crediting rates which have helped maintain interest margins.