Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

U.S. Annuity Sector Now ‘Stable’


By

A.M. Best Co. changed the U.S. life insurance and annuity sector rating to ‘stable’ from ‘negative’.  This information comes from the Insurance and Financial Advisor article “A.M. Best upgrades life/annuity sector’s outlook to ‘stable’,” by Bob Graham.  In A.M. Best Co.’s opinion, the industry has sufficient capitalization to operate and even deal with added stress.  After downgrading the industry’s ratings in 2009 because of financial impairments in the insurance companies, they believe that the industry will continue with moderate growth moving forward.

This industry has taken quite a hit since the end of 2008, both from the world’s economic problems and A.M. Best Co.  A declining real estate sector, an increase in unemployment, low interest rates like fixed annuity rates, decreased consumer spending, and debt and credit problems factored into lower ratings.  As insurance companies have improved their balance sheets, lessened the risk they take on, and moved in a favorable direction with regards to credit spreads and financial impairments, A.M. Best Co. recognized these improvements.  While they recognize that the industry will continue to face challenges, they believe that the worst is over and the life and annuity industry is stabilized.

For more information about the product mentioned in this article contact us here:

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).