Morgan Stanley has raised its outlook on the life insurance industry. The outlook on the overall industry was upgraded stating, “concerns about capital adequacy have diminished and the fundamental outlook for the group is improving.”
Morgan Stanley said it expects book values to sharply increase when life insurers report second-quarter earnings and if credit markets remain stable, book values may rise just over 20 percent on average.
Many life insurers are holding significant excess liquidity at their subsidiaries that might be used to invest in bonds, boosting net interest income, and the benefits of various expense-reduction programs could be seen by the end of the year, the brokerage said.
Click here for the full article from Reuters.
On the flipside, Standard & Poors is maintaining its negative outlook for the life insurance industry. The rating agency indicates that there will likely be more downgrades than upgrades over the next 6 month period.
Click here for the full article from National Underwriter.
Filed under: Life Insurance |
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