Assessing the Impact on Life Insurers' Financial Strength Ratings as the Coronavirus Crisis Unfolds

The extent of the new Coronavirus Disease (COVID-19) disruption on the global economy in the long term is still unfolding. DBRS Morningstar will continue to update its rating assessments on life insurers as the situation evolves. In the current environment, we note that the global economic downturn and low-interest rate environment, as well as the heightened equity market volatility, credit default risk, and product risk, could all adversely affect life insurers' ratings. These factors have the potential to adversely affect insurers' asset portfolios, earnings, and capitalization.