...Long-Term Care (LTC) Charges Drive Operating Earnings Lower in 2014 Pretax operating income declined by 7% to $30 billion in 2014 for U.S. publicly traded life insurers in Fitch's rated universe. The deterioration was primarily driven by LTC- related reserve charges taken by Genworth Financial, Inc. and Unum Group. Excluding these companies, the group reported a 3% increase in pretax operating income during the year. Average operating ROE dropped to 11.5% in 2014 from 12.4% in 2013 for Fitch's rated universe. Market Segment Performance Varies Market segments that showed solid performance include variable annuities, retirement plans and asset management, all of which benefited from higher account values due to improved equity markets and strong sales. Results in individual life and fixed annuities remained relatively stable in 2014, despite modestly unfavorable mortality and modest interest margin compression. Group insurance continues to be negatively affected by competitive pricing and...
