Large Life Insurance Carriers get downgraded by S&P

By | February 27, 2009

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All I can say is that this is not good, not good at all.  Hopefully we can weather this storm of financial unrest and these carriers will be able to get back on their feet around summertime.  I am worried but at the same time don’t see any of these carriers going under at all.  I know they are all restructuring their operations as well to cut cost’s.  Time will tell but don’t cancel your policy quite yet give them time to dump the bad investments. 

Read the story…

S&P cuts 10 life insurers on higher loss assumptions | Markets | US Markets | Reuters

NEW YORK, Feb 26 (Reuters) – Standard & Poor’s on Thursday cut its ratings on a slew of life insurers, including Metlife Inc (MET.N: Quote, Profile, Research) and Hartford Financial Group (HIG.N: Quote, Profile, Research), after it increased its loss assumptions for certain securities in relation to the insurers’ capital adequacy.

The downgrades also reflect “severe equity market declines and volatility on earnings and capital adequacy,” S&P said in a statement

S&P cut Metlife one notch to “A-minus,” the seventh highest investment grade, and cut its insurance unit one step to “AA-minus,” the fourth highest investment grade.

Hartford was also cut one step to “BBB-plus,

Genworth Financial Inc (GNW.N: Quote, Profile, Research) was downgraded two notches to “”BBB,” the second lowest investment grade, and its insurance unit two notches to “A,” the sixth highest investment grade.

Other insurers that were cut include Americo Life Inc, Conseco Inc (CNO.N: Quote, Profile, Research), Lincoln National Corp (LNC.N: Quote, Profile, Research), Midland National Life Insurance Co, Pacific LifeCorp, Protective Life Corp

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