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"Unless you owned a company in Japan to see this up close and personal, you'd never have...

"Unless you owned a company in Japan to see this up close and personal, you'd never have believed we'd be where we are today," says an insurance exec of the difficulties low long-term rates are posing for life insurers. Some firms are making adjustments, others (MET) shifting focus to emerging markets, and others (ING, AV) looking to exit the market altogether.
Comments (7)
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    Annuities and pension funds....going to have a sea change...
    6 Jun 2012, 05:26 PM Reply Like
  • Ohrama
    , contributor
    Comments (506) | Send Message
     
    Yes, I wonder how these guys (insurance companies and pension funds) are going to fulfill their obligations (I guess I know what they will do; pretend all is good to keep paying to top brass big money and declare bankruptcy one day or say they need to cut down on the COLA, monthly payments etc.!). They are still making rosy assumptions of 7.75% return (reduced from their lofty expectation of 8%. for example).
    6 Jun 2012, 05:52 PM Reply Like
  • WMARKW
    , contributor
    Comments (10250) | Send Message
     
    And....they'll raise the price of their products.
    6 Jun 2012, 06:04 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    Assumptions and Mathimatical models has gotten all the Insurance companies into big trouble particularly AXA, MET, and ING. Making 6,7,and even 8% guaranteed living and or death benefit payouts are killing them in this low interest rate environment forcing them to take on greater risk. If the market collapases one more time it will drive a stake through their assets.
    6 Jun 2012, 09:14 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    It's the winners and losers game that Banana Ben has foisted off on the US. And he sure put the pension funds and insurers in the losers camp. But he did help his clients in the banking and wall street sectors.
    8 Jun 2012, 09:04 PM Reply Like
  • johnny12
    , contributor
    Comments (7) | Send Message
     
    Ben has a lot of explaining to do if this blows up !!!
    10 Jun 2012, 09:17 PM Reply Like
  • johnny12
    , contributor
    Comments (7) | Send Message
     
    I was wondering when this would catch up with them .
    7 Jun 2012, 02:54 AM Reply Like
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