Article Abstract:
Lower domestic interest rates in the US deriving from the Asian financial crisis have had an impact on the life insurance industry, although an uneven one. The industry has also changed due to increased tax-deferred saving by US middle-class households through 401(k) plans, IRAs, and annuities. Consolidation in the life insurance industry is one of several factors that will allow many of these companies to survive an eventual market pullback.
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Article Abstract:
The bull market in bonds and consolidation opportunities have allowed life insurance industry stocks to outperform other financial services industry sectors in 1997. There have been many acquisitions and mergers within the industry in the 1990s, and the most financially able will remain competitive in the future. However, there are some insurance stocks, such as Conseco Inc and SunAmerica Inc, which have good earnings and price momentum.
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Article Abstract:
The merger of Citicorp and Travelers Group Inc which was announced in early 1998 is expected to have a major impact on the life insurance industry, both in the US and in Europe, as single product companies may become obsolete. In addition, there is potential for growth in the annuities area with industry consolidation. Even though life insurance industry earnings are good pending legislation could have a negative effect on annuities.
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