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Life insurance stocks
March 19, 2020
7:27 pm
Forum Posts: 1077
Member Since:
February 20, 2018
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What makes these things tick currently selling low the big 3 Manulife Sunlife Great-West
They do better in rising asset value environment e.g. stock market. How bout interest rates are they as sensitive as the banks?

March 20, 2020
4:25 am
Forum Posts: 285
Member Since:
March 30, 2017
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I believe rates sensitivities are even bigger for insurance companies than banks due to the the expected liabilities they need to discount to PV. With lower rates, the PV of the liabilities is huge (think of a pension plan) and that seriously affect their capital (ability to do new business), liquidity, etc

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