U.S. life insurers, a group led by MetLife Inc. (MET:US) and Prudential Financial Inc. (PRU:US), face pressures from low interest rates that could lead to taking on more investment risk, according to a report from U.S. Treasury Department.
“Insurers may be tempted to ‘reach for yield’ by investing in higher-yielding, but riskier, assets,” the Treasury’s Federal Insurance Office said in a report today. “A sustained low interest rate environment may lead insurers to offer products for which risk management becomes more tenuous.”
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