Life Insurance confidence slipped in the third quarter, in line with volatile equity markets which resulted in sagging investment income. Life insurers reported slowing profits growth, on the back of increased stock market volatility.
In a quarterly survey, the results of which were released today, Ernst & Young reports that life insurance confidence fell from 91 index points in the previous quarter to its current level of 83. This means that eight out of ten life insurers were satisfied with business conditions in the 3rd quarter of 2010. This is still up sharply from the position of one year ago, when the impact of the global liquidity crisis meant that only five out of ten life insurers were satisfied.
This is the 29th quarterly survey measuring confidence in the life insurance industry. The research is conducted by the Bureau for Economic Research in Stellenbosch.
Life Insurance Confidence has slowed but remains above pre-crisis levels.