The US life and health (L/H) insurance industry saw more credit rating (ratings) upgrades in the first half of 2022 compared to the same period last year, according to a new report. AM Best report.
Rating downgrades declined in the first half of 2022, according to the report. best feature, “U.S. Life/Health Ratings Activity Mixed in 2021 as Insurers Navigate Headwinds”, Primarily Due to Mergers and Acquisitions (M&A) Deteriorating Strategic Importance to Parent Companies Removing Rating Lifts thing. Other key points from the report are:
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The Life/Annuities (L/A) segment experienced 10 rating upgrades and 3 downgrades in the first half of 2022 compared to 7 upgrades and 7 downgrades in the first half of 2021. In the health segment, AM Best upgraded his rating by six. and 4 were downgraded. By comparison, 4 were upgraded and 1 was downgraded in the first half of 2021.
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The percentage of L/H ratings under review in the first half of 2022 fell from 9.4% to 6.7%. The ratings of 6 L/A carriers and 4 health carriers will be reviewed in the first half of 2022, mainly due to M&A.
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AM Best has assigned three ratings for the first half of 2022, similar to the first half of 2021. More than three-quarters of all L/H rating actions were positive.
AM Best’s outlook for the US L/A and health market segments remains stable. Given the pressure of the low interest rate environment over the past decade, L/A insurers will welcome higher interest rates, according to the report. Most U.S. health insurers have adequate levels of risk-adjusted capital and good liquidity to withstand the uncertainty of COVID-19.
To access a full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=323402.
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