Here you get a glimpse at the problems facing insurers and baby boomers thanks to the Fed’s zero percent interest rate policy as reported earlier this month in the WSJ.
Insurers reported a messy second quarter plagued by low interest rates and catastrophe claims, highlighted by a $2 billion charge at MetLife Inc. tied to a savings product popular with baby boomers.
Life insurers MetLife, Prudential Financial Inc. and Lincoln Financial Group booked lower premiums and fees, while property-and-casualty insurer Allstate Corp. faced elevated levels of claims for severe weather, including a record hail storm in Texas.
Lincoln Financial was the only insurer of the group to eke out an increase in operating earnings; the other three companies posted double-digit declines.
Latest posts by E.J. Smith (see all)
- Your Retirement Life: Thank You EJ from Kodiak, Alaska (Part II) - October 18, 2019
- Boston Pulls $248 Million from Fisher Investments - October 17, 2019
- Doing Business with Fidelity (Not Schwab) - October 16, 2019