Weak Investment Returns for Insurers

The Star is predicting weak investment returns for insurance companies due to the poor performance of the financial markets following the crisis in the US.

However, investment returns will remain positive over the longer period.

The solvency ratio was 120.6% at end of 2007, well above the regulatory minimum.

Manulife meanwhile believes that insurance is counter-cyclical and people tend to save more and cut back discretionary spending during current market conditions.

Source: The Star