Most US insurers remain well capitalized and have benefited from lower mortality and morbidity rates,
low credit impairment, and recovery in equity markets.
The segments total capital and surplus has grown by about 5% through September 2020 driven by positive earnings and a change in unrealized capital gains. However, the net profit of the insurance industry for 9 months of 2020 fell by 55% compared to the same period in 2019, to $13.2 billion.
Low interest rates and a desire to hold more liquidity during the pandemic also led to an increase in debt issuance as companies seized the opportunity to refinance older issues that had been priced at higher interest rates.
A.M. Best also noted operational problems especially at a time when unemployment was depressing demand despite renewed consumer interest in life insurance. While companies in this market segment need to focus on mitigating these and other risks, A.M. Best considers it crucial that accredited insurers use the opportunities to support remote work and sales.
Source: https://forinsurer.com/news/21/03/22/39457
Photos are from open sources.
