European insurers will be hard hit if debt contagion spreads to Italy and Spain
European insurers will be hard hit if debt contagion spreads to Italy and Spain according to MOODY's. The rating agency said most rated European insurers could sustain further weakening in the creditworthiness of the Irish and Portuguese sovereigns as well as higher-than-expected losses on Greek sovereign debt.
"Today, many European re/insurance companies find themselves in a precarious position with regard to their financial strength ratings. The sovereign debt and economic crises in many European countries are adding pressure to insurers' risk-adjusted capitalisation at a time when catastrophe losses, soft market conditions and thinning reserve positions are already pressuring company
balance sheets", stated Benjamin SERRA, Assistant Vice President, MOODY's, with the occasion of Baden-Baden Meetings.
Author: Oleg DORONCEANU
on 24.10.2011
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