What's Behind the Rally in Life Insurance Stocks?

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Oct. 29 (Bloomberg) -- Bloomberg's Jonathan Adams discusses the performance of life insurance stocks with Alix Steel on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Is the life insurance etf.

You have life insurers, property insurers, that is 30% for the year.

What is really leading that rally?

There have been a number of very positive forces that have affected those industries.

It is a rise in interest rates, which has been very helpful for those companies because it has helped to reduce the liabilities they have to pay on some of their guarantees for annuities.

They also have been able to benefit from higher sales with a positive market as a backdrop.

Staying with the macro focus for a second, the consumer is still not doing that great.

We saw weaker consumer confidence.

Not we need to see a consumer turnaround for the life insurance to do better?

Certainly macro trends are very important for the industry as a whole.

I think the driver in the short term has really been what is happening with the individual balance sheets of those companies.

It has been a positive story and has a limited and very problematic risk, which is they would not be able to invest and they would be a that they would be allowed to meet their commitments to their clients.

It sounds like it is a very company specific story.

We have some names coming out after the bell.

But of aflac's business is in japan.

Where is the best growth for these insurers?

For life insurers it is primarily in the retirement market.

Any of the companies doing well have been able to offer a product to the marketplace, usually in the form of annuity, where consumers find that attractive but they find guarantees attractive.

If they are really looking toward -- they are really looking toward their retirement years.

The guarantees and the benefits that annuity products can bring to them -- that has really been helpful to many of the life insurance.

Think you so much.

We will be looking at that when affleck comes out with earnings.

We are on the markets again in

This text has been automatically generated. It may not be 100% accurate.


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