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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 19, 2014 03:19 PM (EST)
The 24 publicly traded life and annuity stocks followed in this Best's Special Report titled, "U.S. Life/Annuity Stocks Underperform As Markets Await Interest Rate Hike," underperformed the broad-based S&P 500 index during the third quarter of 2014—down 1.3% versus a gain of 1.1%. Eight stocks had positive performance during the same quarter, while 16 stocks experienced declines. The investment mood was dampened during the quarter as the expected rise in interest rates did not materialize, and earnings guidance and outlooks are moving toward a more tempered interest rate forecast for an extended period. Previous quarters had been positive as companies strengthened their balance sheets, and combined with consolidations through mergers and acquisitions, this positioned them to take advantage of the anticipated rising rate environment.
During the third quarter of 2014, Voya Financial, Inc. was the best performing stock, appreciating 7.6%. In addition to reporting solid second quarter results, Voya Financial, Inc. continues to be well capitalized, and management has decided to increase the company's stock repurchase program by USD 500 million, which investors viewed favorably.
Conversely, Genworth Financial, Inc. was the worst-performing stock in the third quarter, declining 24.7%. Despite showing promise in its mortgage insurance business, Genworth Financial, Inc. continues to struggle in its long-term care segment with elevated and persistent claims.
For a full copy of this special report, please visit: http://www3.ambest.com/bestweek/purchase.asp?record_code=230875 .
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