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The life insurance industry has its outlook cut to negative by Moody's thanks to the expectation...

The life insurance industry has its outlook cut to negative by Moody's thanks to the expectation (certainly reinforced in the last 24 hours) "that interest rates will remain in the low single digits for the next few years ... continu(ing) to erode insurers' earnings and revenues." The Fed has one word for the insurers: Leverage.
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Comments (2)
  • bill baum
    , contributor
    Comments (10) | Send Message
     
    but then again there are heavely invested in real estate and stocks which is a BIG positive, its not all negative i am a buyer of gnw,
    14 Sep 2012, 05:51 PM Reply Like
  • Haifen
    , contributor
    Comments (15) | Send Message
     
    Bill hi,

     

    I agree on the equities and maybe real-estate too

     

    - I think market volatility is baked into the prices and can add as well as reduce.
    - Insurance company PEs are near their historic lows.
    - This is not a business that is going to be replaced by a newer and better technology.
    - Some insurers also have a diversified international revenue stream
    - I don't see this report as having any effect on stock prices - as they are climbing!
    - If they do go down, I'll be looking to add to my positions :-)
    19 Sep 2012, 05:00 AM Reply Like
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