Insurance Companies Earnings will be Hurt with The New Fed Policy

The Fed today announced a lowering of interest rates by buying up long term treasuries. This will directly affect Life insurers earnings. Life insurers have long term treasuries in their life product insurance portfolios and the Fed move will lower their earnings and put the products at risk. Annuities returns will be less also. It remains to be seen how the insurance companies will react but certainly they will have to down grade their earnings projections. Until next time be careful out there and know you risks. K

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