There was a sobering article on MSN Money a few days ago eluding to the possibility that life insurance companies with heavy exposure in mortgage backed securities and other risky investment vehicles could be the next to fall.
Over the last several months, life insurers have been hit by downgrades from every ratings agency, reflecting their exposure to volatile credit and investment market conditions. Those investors that are invested in longer-range products that involve significant upfront funding like annuities should be most concerned.
See the complete article here.