Life insurers’ investment returns rose to 6.02% in 2005, from 5.93% in 2004, after falling in every previous year since 2001.
Analysts at Conning Research & Consulting Inc., Hartford, discuss the modest increase in returns in a review of life insurer investment portfolios.
Life insurers have suffered because bond interest rates were low from 2001 to 2004, and life insurers have invested more than 80% of their assets in bonds, Conning analysts note.
Life insurers invest assets in 6 categories of assets.