Insurance Companies Trade Mixed as Investors Digest Operation Twist: KIE, AIG, GNW, LNC, PRU, MET
Insurance stocks (NYSE:KIE) are mixed today after selling off hard this week in response to the Fed’s plans to implement Operation Twist. Insurance companies are facing potential earnings declines with the Fed’s plan to purchase bonds and the increasing concerns about global growth.
Recent Wall Street forecasts project that insurance companies will have to deal with low rates and weak market returns through at least the end of the year, possibly longer. At issue for the companies is that returns on their investment portfolios can’t keep pace with the obligations from sales of annuities and policies over the last few years.
Here’s how the insurance sector made out today: American International Group (NYSE:AIG) and Genworth (NYSE:GNW) are rallying hard today. Lincoln National (NYSE:LNC), Prudential Financial (NYSE:PRU), and MetLife (NYSE:MET) are still falling.
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