Life insurers should beware if interest rates remain at all-time lows, according to a report from Fitch Ratings. Even so, a prolonged period of low interest rates will most likely affect company balance sheets but does not threaten solvency.

"While Fitch believes this does not pose an immediate solvency issue for the industry as a whole, it is concerned that ongoing spread compression further weakens the industry’s already strained ability to grow earnings and capital in the current environment of low interest rates, poor credit markets and volatile equity markets," said Julie Burke, managing director at Fitch.

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