Evercore ISI sees risk for U.S. life insurers from banking crisis

Reinsurance of America, Incorporated

16/03/2023 13:22

** Evercore ISI sees potential impact on U.S. life insurers from direct
credit and counterparty exposure through losses on derivative transactions as
Credit Suisse deepens market concern on U.S. banking crisis
    ** The losses could be over the next several quarters or impact regulatory
standards due to a combination of sales, impairments, or ratings downgrades and
higher capital charges - brokerage
    ** Says Lincoln National  LNC.N  has the highest exposure to the regional
banks and Credit Suisse at 18% of its market cap followed by American Equity
Investment Life Holdings  AEL.N  at ~9% and Brighthpuse Financial  BHF.0  at 8%
    ** "Overall liability funding profile is pretty stable for most life
insurers, so instances of forced sales of long duration assets to meet liquidity
needs should be limited for the sector" - Evercore ISI

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))