In a statement explaining the board's action, Federal Reserve Chairman Ben Bernanke and his colleagues said that while incoming data suggest the economy is continuing to expand at a moderate pace, "the downside risks to growth have increased appreciably."
This is a mixed bag for insurance companies. We've already seen Lincoln Financial sell 50% of their GMWB rider business to Swiss Re via a reinsurance agreement to raise cash. Obviously, global financial crisis is no fun for anyone, but the insurance industry really doesn't need another stretch of historic-low interest rates pressuring surplus. Neither do the vendors who serve.
Stay tuned.