The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A pedestrian walks past the Manulife building in downtown Vancouver on May 3, 2012.
A pedestrian walks past the Manulife building in downtown Vancouver on May 3, 2012.
(JONATHAN HAYWARD/THE CANADIAN PRESS)

An interest rate hike should be good news for life insurance companies

An uptick in interest rates through North America is re-framing the outlook for bonds, mortgages and even student loans.

But few industries have earnings as deeply entwined with changing rates as life insurance companies, and Canadian insurers’ earnings and book values stand to benefit from the increase as long as the markets co-operate, one expert says.