What You Need to Know
- Interest rates look a little better for life insurers.
- Insurers still have big blocks of business for sale.
- Stock prices are getting back to normal.
The surge in COVID-19 deaths that hit in January and early February might have a noticeable effect on the earnings of insurers with large amounts of life insurance on their books, according Nigel Dally and other securities analysts at Morgan Stanley.
Executives from large, publicly traded life insurers spent the first three quarters of 2020 talking about how the COVID-19 pandemic had not come near to being as costly as the kinds of fictional scenarios they had been using in disaster planning.
Executives seemed to talk more about COVID-19-related life insurance claim figure when they were going over results for the fourth quarter of 2020.
Dally and colleagues say they believe pandemic-related claims are starting to take a toll on life insurers.