We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Blog + Articles

Categories

  • Industry Articles (13,492)
  • Industry Conferences (2)
  • Industry Job Openings (3)
  • Negative Media (128)
  • Positive Media (73)
  • Sheryl's Articles (517)
  • Sheryl's Blogs (149)
  • Wink's Articles (203)
  • Wink's Blogs (173)
  • Wink's Press Releases (80)
  • Blog Archives

  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • Rating Migration: Key Credit Weakness for US Life Insurers Amid Higher Investment Risk

    October 8, 2019 by Moody's Investor Service

    Searching for yield in a low interest rate environment, our rated US life insurance companies have become more susceptible to the negative impacts of falling ratings or ‘rating migration’. This is primarily due to a decline in the credit quality of the investment grade portion of their fixed income portfolios, as shown by their increased investment allocation to Baa-rated bonds, which have increased to over one-third of total bond holdings today from a little over one-quarter a decade earlier. A sharp downward turn in the credit cycle that leads to a large number of credit rating downgrades within insurers’ bond portfolios, and a corresponding rise in defaults, would reduce life insurers’ capital strength. Interestingly, the greatest impact would be a function of higher capital requirements caused by rating downgrades, and to a lesser extent lower statutory capital driven by defaults.

    Under a severe rating migration scenario, which we examine in this report, industry capital strength as measured by the risk-based capital (RBC) ratio1 would decline to 378% from a year-end 2018 industry median of 447%.

    Click HERE to read the full story via Advisor Magazine.

    Originally Posted at Advisor Magazine on October 4, 2019 by Moody's Investor Service.

    Categories: Industry Articles
    currency