Moody's: U.S. life insurers see capital rebound

Moody's Investors Service said a review of the 2009 statutory statements of rated U.S. life insurers confirms a distinct capital rebound from the prior year.

According to the agency, the improvement was driven by capital contributions, industry-friendly regulatory and accounting changes and stronger earnings, uplifted by a resurgent equities market.

"Looking at 2010, we expect the industry to benefit from a better credit environment, although there may be some pressures on capital from commercial real estate and non-agency RMBS investments, especially in a downside stress scenario," Moody's senior vice president Scott Robinson said in an agency statement.

"Nevertheless, continued capital generation through organic earnings, on top of the currently robust capitalization, makes it more likely that a number of companies could see their ratings outlooks move back to stable from negative."

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