Insurance par funds hold steady in 2020, but policyholders should reset expectations

Insurers cite challenges of a low-rate environment; short-term fluctuations in equity markets trading at rich valuations; and growing shift to ESG factors in investing

Genevieve Cua

Published Mon, Jun 14, 2021 · 05:50 AM

Insurance

LIFE insurers generally posted lower investment returns in their life funds in 2020. Most, however, are opting to maintain bonus rates for participating (or par) policies, providing yet another instance of the "smoothing'' process at work in traditional par insurance.