Variable annuities still weigh on 3 U.S. life insurers
March 16, 2014 by Staff Writer
According to a report by Moody’s Investor Service, variable annuities continue to “negatively impact the balance sheets of the three largest variable annuity writers.” Those three being: Prudential, Jackson National and MetLife.
“Balance sheet headaches are lingering long after the end of the financial crisis,” says Scott Robinson, a Moody’s senior vice president. “The steep drop in equities during the financial crisis prompted insurers to increase reserves and capital to offset risk linked to variable annuities, and although risk exposures have decreased, they are still substantial.”