NU Online News Service, June 10, 2004, 1:03 p.m. EDT – The life insurance arm of Fidelity Investments, Boston, appears to have a bright future ahead of it.[@@]
Analysts at Standard & Poor’s Ratings Services, New York, gave that assessment Wednesday in a discussion of their decision to affirm the AA insurance financial strength rating of Fidelity Investments Life Insurance Company.
S&P also affirmed the life unit’s AA credit rating.
Fidelity Investments Life focuses mainly on annuities, and that tight focus exposes the unit to market risk and regulatory risk, according to S&P credit analyst Darryl Brooks.
But Fidelity Investments Life is core to a big company with a comprehensive customer wealth management services strategy, strong profits and “extraordinary technology,” Brooks says.
Fidelity Investments Life probably will continue to be a core Fidelity operation, and its annuity sales should climb more than 10% this year, Brooks says.