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Fitch: Prolonged Low Rates Pressure US Life Insurers

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CHICAGO--(BUSINESS WIRE)--US life insurers will be under increased pressure to rationalize long-term rate assumptions used to establish reserves given the market's revised expectations for low rates, says Fitch Ratings. We see a heightening risk that life insurers could take charges in third-quarter 2015 due to rate expectations. With last week's Fed decision reinforcing expectations for a very prolonged return to higher interest rates, the probability dimmed for near-term low rate relief. Low

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