Sector Snap: Life Insurers |
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Published
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Thu, 28 Jun 2007 16:40
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NEW YORK (AP) - Moody's Investors Service, a credit rating agency, said Thursday it does not expect the fallout in the mortgage industry to cause life insurance companies to have trouble repaying debt.Moody's said life insurers have have ry manageable' exposure to subprime mortgage debt, or home loans to people with bad credit. This type of credit deteriorated early this year as payment defaults mounted and investors fled risky mortgage debt.Life insurers invest the premiums they collect in stocks, bonds and other investments. The meltdown in subprime mortgage credit in the past few months has devalued some of the securities backed by mortgage debt.While life insurers have varying risk appetites, Moody's said it does not anticipate downgrading the credit rating of any life insurers. Some life insurers have subprime debt on their books, Moody's said, but in most cases it is in bonds with high credit ratings.Low-rated subprime debt constitutes 0.04 percent of the industry's assets, Moody's said.--------------------------------------------Questions or comments about this story should be directed to Associated Press reporter Dan Seymour at 212-621-7190.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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