Bloomberg News

Life Insurers Seen Adding Risk Amid Low Rates, Treasury Says

June 12, 2013

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.”

To contact the reporter on this story: Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • MET
    (MetLife Inc)
    • $49.15 USD
    • 0.29
    • 0.59%
  • PRU
    (Prudential Financial Inc)
    • $81.0 USD
    • -0.06
    • -0.07%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus