Life insurance companies face better outlook, Moody's reports
May 19, 2010, 07:51 pm
Moody's Investors Services recently announced it's improving its assessment for the life insurance industry.
This market's rating was improved from negative to stable by the firm because economic indicators show better prospects for these companies. It also said that improvements in the country's employment numbers should increase the interest in life insurance policies.
"Although we expect the economic recovery to remain sluggish and vulnerable to global market disturbances, we believe that the underlying trends indicate stability for the financial prospects and credit profile of the U.S. life insurers over the medium-term," Laura Bazer, who authored the report from Moody's, said.
Bazer also said life insurance providers should be better able to deal with the potential for another economic downturn. However, the unemployment rate in the country did increase recently, which could make economic improvement more difficult.
According to the Bureau of Labor Statistics, the jobless rate rose to 9.9 percent in April after being at 9.7 percent during the first three months of the year. A number of analysts expect that it will remain near double digits for 2010.
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