Numerous year-on-year comparisons
reveal that the US life insurance industry has experienced dramatic
improvement in its financial condition, reports rating agency
Moody’s Investors Service.
A major indicator of the improvement
was “a precipitous” 74% fall in investment impairments for the 19
life insurers covered by Moody’s in its study.
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Moody’s also noted that almost all of the life
insurers posted positive operating earnings and net income during
the first quarter of 2010. Across the 19 insurers operating income
increased by a total of $9bn compared with the first quarter 2009
and net income increased $11bn.
Insurers are also benefiting from renewed
activity in capital markets.
“The renewed market access significantly
benefited life insurers’ credit profiles and financial flexibility,
in particular, as debt and equity issuance strengthened both
liquidity and capital adequacy,” said Ann Perry, Moody’s
vice-president and senior credit officer.
