Analyst Sees Too Many Unusual Items

Excluding unusual items, U.S. life industry year-to-date performance has been just average, Kamath writes.

“We expect contributions from such items to decline in coming quarters,” Kamath writes.

Kamath observes that life insurers compete with other types of businesses for the assets of investors who want to put money in the financial services sector.

Rising property-casualty insurance rates could make p-c insurers more attractive, and any hint that the Federal Reserve Board might stop raising interest rates could make regional bank stocks more appealing, Kamath writes.

Sales of many types of life and annuity products were flat or down during the first half of the year, Kamath writes.

“Moreover, the only products that are growing are those that face rising capital requirements such as variable annuities with guaranteed living benefits and universal life with no-lapse guarantees,” Kamath writes.