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US life insurer investment portfolios to withstand market volatility: Fitch

January 5, 2023

Analysts at Fitch Ratings have stated that rising rates have been largely favourable for US life insurer investment portfolios, driving higher investment income as reinvestment rates exceed book yields.

The rising rates have played a large role in helping to mitigate macroeconomic headwinds, market volatility and the heightened probability of mild recession in 2023.

At the same time, continued macroeconomic volatility and mounting recessionary pressures will challenge market-based returns, eroding variable-rate investment income and fee-based income.

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