Insurer optimism hit by declining profits

 
Caitlin Morrison
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OPTIMISM among life insurers deteriorated in the final quarter of 2014, as costs rose and profitability declined.

According to the latest financial services survey from CBI/PwC, costs are expected to continue to grow and the reduction in profitability is expected to continue.

PwC’s Jonathan Howe said: “It is not surprising to see a significant fall in optimism among life insurers. Pension freedoms and annuity reforms mean life insurers are closely analysing their business models as many approached year end with annuity sales significantly down.”