Life Insurance Stocks Fall As Outlook Darkens
Shares of life insurers fell on Thursday, extending recent losses and sending some companies to new lows, on concerns the sector’s woes would only worsen in the fourth quarter.
There is growing concern over life insurers large exposure to commercial mortgage-backed securities, based on increasing volatility in CMBS indexes.
Bonds backed by U.S. commercial real estate loans have weakened on fears that a stalled economy could lead to a wave of defaults on properties such as office buildings, stores and hotels.
Wachovia, in a research note, said it expected the sector to see “continued deterioration across a spectrum of asset classes, something which we’re only in middle innings.”
Late Wednesday, MetLife said it did not have exposure to two mortgages that have been reported as likely to default, and said most of its CMBS portfolio was highly rated.
Tags: asset classes, bonds, commercial mortgage backed securities, commercial real estate, deterioration, fears, fourth quarter, growing concern, indexes, life insurers, lows, metlife, office buildings, real estate loans, volatility, wachovia, woes
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