Analysts Expect Sunnier 2Q For Life Insurers
July 14, 2016 by Cyril Tuohy
Fewer deaths, higher fees and higher investment income are expected to help life insurance companies post better results in the second financial quarter than they did in the first quarter, a pair of Wall Street analysts said.
With 149,000 deaths in the second quarter, down from 161,000 deaths in the first quarter, insurance companies likely will pay out less in claims. That’s according to Keefe, Bruyette & Woods analysts Ryan Krueger and Blake Mock, in a research note to clients.
A number of other factors also should lead to better second-quarter results, the analysts said. Those factors include a 6.4 percent daily average increase in the Standard & Poor’s 500 index compared with the first quarter, a rebound in investment income, expense control and good capital management.
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