KBRA Releases 2021 Sector Outlook: U.S. Life Insurance

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases its U.S. Life Insurance 2021 Sector Outlook.

The year 2020 brought about unprecedented and unexpected challenges. KBRA believes that the U.S. life insurance industry weathered those challenges well, having entered the pandemic in a strong financial position. The industry’s strong capital and liquidity, high-quality investment portfolios, and enhanced governance and risk management all provided solid support. At the same time, many management teams pulled levers (e.g., discontinuing share repurchases) to bolster capital and liquidity during a period of intense uncertainty.

KBRA believes that management teams will generally continue to take mitigating actions when needed, and that sufficient capital and liquidity cushion remains to continue supporting the industry during 2021. Certainly, any life insurer may face unique pressures, while certain companies could come under ratings pressure. But the industry’s overall strong financial resources base, enhanced risk management, government support of the economy (and perhaps additional government economic support once the new administration begins its work), and the newly available COVID-19 vaccines all contribute to our Stable Outlook for 2021.

Click here to view the report.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.