A.M. Best Special Report: U.S. Life/Annuity Stocks Declined in First Quarter of 2014

OLDWICK, N.J.--()--After handily outperforming the broader equity markets in 2013 by rising 62%, U.S. life/annuity stocks declined 3% in the first quarter of 2014, versus a 1% increase in the Standard & Poor’s 500-stock index, according to a new report from A.M. Best.

This special report, titled “U.S. Life/Annuity Stocks Declined in First Quarter of 2014,” states that this underperformance so far in 2014 could persist. Life/annuity stocks now are trading near historical valuations and typically track the broader equity market. The sell-off in stocks this year appears to be driven by shareholders booking profits rather than by short selling.

Capital management activity was strong in the first quarter of 2014. In total, life/annuity companies returned $3.6 billion of excess cash to investors in the first quarter, 51% increase over the $2.4 billion that was returned in the first quarter of 2013.

To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=225286.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Nick Halen, 908-439-2200, ext. 5126
Industry Research Analyst,
Credit Rating Criteria,
Research and Analytics
nick.halen@ambest.com
or
Ken Johnson, 908-439-2200, ext. 5056
Assistant Vice President,
Industry Research
ken.johnson@ambest.com
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

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Contacts

A.M. Best Company
Nick Halen, 908-439-2200, ext. 5126
Industry Research Analyst,
Credit Rating Criteria,
Research and Analytics
nick.halen@ambest.com
or
Ken Johnson, 908-439-2200, ext. 5056
Assistant Vice President,
Industry Research
ken.johnson@ambest.com
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com