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A.M. Best Report On Life/Annuity Industry

A.M. Best Co. recently came out with a report which reviews the life/annuity industry challenges in 2011.  It also previews what's to come in 2012 for the industry.  Their press release found on talks about how the year's results  were marked by strong regulatory capital, good operating earnings, and constant efforts to improve their numbers.  Life insurance companies felt additional pressure due to low interest rates, which should remain low for the next few years.

Even though there is a slow rate of growth, A.M. Best expects favorable earnings trends for the coming year.  They also discuss how some key players have placed an emphasis on whole life insurance and this is viewed as encouraging since this type of life insurance helps companies' credit profiles through long-term, stable earnings.  Whole life insurance has been around for many years, but there is a renewed focus on it for many insurers.

Some carriers have introduced a new range of variable annuity strategies while others have placed more focus on lines such as fixed annuities, Medicare supplements, and long-term care.  Good things are expected for 2012, but there will be challenges each company must face with determination.  A.M. Best is a very reputable predictor of company production, but it's no guarantee these industries will see success.  Time will tell if their hard work pays off in the years to come.

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