Fitch Ratings expects 2010 earnings and capital trends for life insurance carriers in general to strengthen from 2009 levels.
Fitch, New York, says it anticipates the improvement mostly because life insurers are experiencing lower investment losses then they did last year.
Improved earnings and capital trends, persistent signs of an improving economy and confidence that losses on commercial real estate will be contained also lead Fitch to consider the possibility it may upgrade the industry’s outlook to stable from negative.
“However, Fitch still projects an increase in [commercial real estate]-related investment losses, which will likely be a significant driver of realized losses in 2010,” the rating service said in a statement.
Among key trends Fitch expects to see for the life insurance industry this year: