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Fitch Releases Special Report on U.S. Life Insurers' Net Investment IncomeFitch Ratings today released a special report summarizing net investment income (NII) performance for U.S. life insurance companies. In this report, Fitch analyzes key drivers and trends of life insurers' investment performance between 2010 and 2014. The report compiles data from life insurers in Fitch's debt rating universe as well as the overall life insurance industry. Bond yields have declined during the four year period ending 2014, due to the prolonged low interest rate environment. Life insurers have traded liquidity for yield over this period by modestly extending the duration of their portfolios and shifting from public to private bonds. Additionally, companies have increased their exposure to Schedule BA assets. The overall asset risk for the industry remains adequate, despite changes in the portfolio makeup. Over the next 12-18 months, Fitch expects a continued decline in life insurers' portfolio yields. The full report 'U.S. Life Insurers' - NII' dated Aug. 31, 2015, is available at 'www.fitchratings.com' under 'Insurance' and 'Special Reports'. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: --'Insurance Rating Methodology' (July 2015). U.S. Life Insurers' NII Dashboard https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870229 Applicable Criteria Insurance Rating Methodology (pub. 14 Jul 2015) https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868367 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. View source version on businesswire.com: http://www.businesswire.com/news/home/20150827005728/en/ |
