Featured White Paper

Unyielding Yields: Interest Rate Challenges to Insurance Industry Profitability, ” September 2012

Conning’s industry experts address the key interest rate challenges to insurance industry profitability:

  • Central banks in developed economies have driven interest rates down to record low levels
  • Investment income has been falling sharply, putting pressure on earnings
  • Low likelihood of respite from this in the short run, though long-run threats to capital lurk from future rate increases
  • The insurance industry faces an asset-based problem that requires enterprise-wide strategies for its solution
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Data source: ©A.M. Best Company—used by permission. Analysis: Conning Property-Casualty Forecast & Analysis by Line of Insurance Note: Calculations based on net investment income divided by net investable assets.

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Data source: ©A.M. Best Company—used by permission. Analysis: Conning Life-Health Forecast & Analysis by Line of Business Note: Calculations based on net investment income divided by net investable assets.