NU Online News Service, May 31, 7:23 p.m. – U.S. life and health insurance companies are the only U.S. insurance companies that have set premiums at suitable levels, according to Standard & Poor's, New York.
S&P will be reviewing the state of the life and health sectors along with other insurance sectors in a series of reports scheduled for publication next week.
S&P has released a summary indicating that it will be adopting a stable outlook for both the life and the health sectors. But the rating agency adds that its analysts particularly like the recent willingness and ability of health insurers to impose big premium increases.
Life insurers have also been reporting strong earnings, despite the recent stock market slump and falling interest rates in 2001, which hurt sales of variable annuities, S&P says.
Commercial-lines writers and reinsurers have been able to raise prices since the Sept. 11, 2001, attacks, but S&P says that will not make up for years of soft premiums and insufficient reserves. It will be adopting a negative outlook for both sectors.
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