A major credit rating agency says in a new report that it is maintaining its “stable” outlook on the U.S. life insurance industry.
Standard & Poor’s, New York, published the report, “U.S. Life Insurance 2012 Outlook: Solid Capital And Liquidity Support A Stable Outlook In The Face Of Macroeconomic Headwinds,”in RatingsDirect, which appears in the company’s Global Credit Portal.
The stable outlook, Standard & Poor’s says, reflects the company’s “expectation of continued strong capital and liquidity, and moderate investment portfolio losses.”
The company qualified the statement by noting that it “continues to monitor the macroeconomic headwinds facing life insurers, including low interest rates and equity market volatility.
“Such sustained conditions are likely to result in an increase in negative rating outlooks for individual insurers during 2012,” the report adds. “We do not expect to downgrade many life insurance companies as we enter 2012, unless we lower the U.S. sovereign rating (AA+/Negative/A-1+).”