just a quick survey of indices and the insurance cos gives us a good idea of what their betas are really like:
| 6m | 1y | 6m Beta | |
| S&P500 | -32% | -40% | 1 |
| DOW | -31% | -38% | |
| Manulife | -71% | -71% | 2.2 |
| Sun Life | -53% | -64% | 1.7 |
| MetLife | -62% | -64% | 1.9 |
| Prudential | -75% | -76% | 2.3 |
| Hartford | -81% | -90% | 2.5 |
Risk management failure? Perhaps - or management actively decided to take this risk. Looks like it is time to rummage back through the annual reports to find out if shareholders were warned that these risks were being taken. After all, if we expect oil & gas and gold mining companies to reveal their hedges of future production, shouldn't we expect the same of lifecos?
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