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

To contact the editor responsible for this story: Dan Kraut at

Hollywood Goes YouTube

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • MET
    (MetLife Inc)
    • $54.74 USD
    • 0.35
    • 0.64%
  • PRU
    (Prudential Financial Inc)
    • $89.7 USD
    • 0.64
    • 0.71%
Market data is delayed at least 15 minutes.
blog comments powered by Disqus