Life Insurance Companies Gets Technical Coverage as They Shake Up Operations in Increased Premiums Environment

Companies in the life insurance industry could be in for a solid 2013, as life insurance premiums are predicted to rise both this year and next. Globally, life insurance premiums are projected to increase by approximately 3%, according to a recent Swiss Re study. Several companies in the industry like, MetLife Inc. (MET) and Genworth Financial Inc. (GNW), have also been taking steps to improve their businesses by divesting non-core assets, growing their presence abroad and securing top executives to head up operations. See how the following companies, Genworth Financial Inc.(1), MetLife Inc.(2) and Prudential Financial Inc.(3), which are in the Life Insurance industry have been performing over the past years and how they are expected to perform in 2013.

MetLife's recently completed the sales of its bank deposits for $6.4 billion. This move follows the company's move away from the home loan segment last year as MetLife continues to recalibrate to its core insurance business. MetLife will be releasing its Earnings report on February 13th, 2013.

Genworth Financial has also been selling non-core holdings with the aim of refocusing on its core business. The company has been considering alternatives for two of its non-core businesses which include an international division that offers lifestyle protection insurance. It is planning to boost this business value with the objective of selling it in the next few years.      

Asia and Latin America have been a specific focus for a number of life insurance companies of late, as countries such as India and Brazil offer great growth potential. A lack of health protection for many individuals combined with a growing affluent population in the aforementioned countries is fuelling demand, and those that can service that demand could see sales and profits rise.

While the industry looks poised for a solid year, there are a number of industry specific challenges. Competition in the industry remains spirited, and with interest rates remaining low, returns on funds held have been an issue for some like Prudential Financial Inc. (PRU). That being said, a recovering economy in the U.S. coupled with strong foreign demand could lead life insurers higher this year.