Macro Commentary

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#333 | Mid-Year Statutory Results Round-up

Quick Take As tumultuous as the economic environment has been this year, life insurers have shown a surprising level of resiliency. Aggregate surplus across the 18 life insurers in the sample is down just 1.8%, with the Big 4 mutuals…

#312 | The New Money Tipping Point

With rates making a decisive and sustained move upwards for the first time since 2019, we have to ask an uncomfortable question – at what point will life insurers begin to wall off in-force portfolios and offer new portfolios that…

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#305 | The Specter of Rising Interest Rates

Not withstanding Russia’s horrific invasion of Ukraine and the potential impacts to the financial system, we are facing – for the first time since 2020 – the specter of a persistently rising interest rate environment. This time feels different. Think…

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#262 | Inflation & Life Insurance

The picture for this post is a meme that has apparently been floating around the Reddit forums that have been instigating the surges in trading and prices of stocks, digital currencies and other commodities. Usually it's accompanied by the caption…

#211 | The Emerging Credit Event

Although most of the attention in the media has focused on the impact of the response to COVID-19 on equities, the proper functioning and pricing of credit is far more important for life insurers. The last two weeks have seen…

#208 | Taking Stock of the TNX

Although the public and the media are completely fixated by COVID-19 and the dramatic oscillations of the equity markets, we insurance folks are watching a different metric – the 10 Year Treasury yield (TNX). Since February 20th, the S&P has…

James Christie | Here We Go Again – With A Twist

The story currently playing out in the bond and equity markets seems eerily similar to what we saw in 2008 and 2009. Significant volatility in the equity markets combined with declining interest rates and rate actions by the Fed. In…

#205 | Charting New Territory

The market turmoil over the last week might not be unprecedented in and of itself, but it is producing some unprecedented results – and not in a good way for fixed and indexed insurance products. While equity drawdowns are obviously…

#179 | Life Insurers in a Vice

Back in the day, folks used to say that if you wanted to know if life insurers were under yield pressure, all you had do was look at the 10 year Treasury. That’s no longer the case. A decade of…

#59 | Low Rates and Life Insurance

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