- Language: English
- 96 Pages
- Published: December 2009
- Region: Global
Managing Existing Business Remains Important For The Future Profitability Of U.K. Life Insurers Nov 11
- Published: November 2011
- Region: United Kingdom, Great Britain
- Standard & Poors
Cutting expenses and reducing lapse rates not only improves new business margins for life insurers, but can also boost the profitability of their existing business. A review of rated U.K. insurers writing long-term business by Standard & Poor's Ratings Services indicates that such improvements can improve in-force profitability and hence return on embedded value by as much as 4%. Strong persistency and expense management are key to future profitability and can help mitigate the relatively low profitability of some life products, for example, pensions. We have long viewed embedded value (EV) as a valuable tool for understanding the profitability of a life insurance company (see "Embedded Value Is A Key Driver In Standard & Poor's Evaluation Of Life Insurers' Earnings,"...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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