Life insurers face huge hit to earnings as pensions bite

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Rupert Hargreaves
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Life insurers face huge hit to earnings as pensions bite  Life and health insurers face a significant headwind to growth in the form of lower pension discount rates according to an equity research note issued by RBC today. Low-interest rates, tighter credit spreads, and a flatter yield curve are causing havoc across the financial world, and there’s nowhere where this is more apparent than the pension industry. At the beginning of August, Bloomberg reported that the S&P 500 total pension deficit was near $500 billion, and as rates have fallen further it’s highly likely this total will have grown. As…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk