The European insurance industry is cruising through the year, with good results and stable ratings throughout the first half. Moody’s Investors Service says the operating environment is likely to be positive over the short term.

Its latest industry outlook shows that catastrophic weather events have failed to affect the overall profitability of European insurance. Turmoil in credit markets and continuing competitive pressures have also worked against insurers, but not enough to dampen industry results.

Moody’s analyst Jose Morago says the collapse of sub-prime credit facilities in the US is unlikely to have an effect on the other side of the Atlantic.

“With a few exceptions, the European insurance industry has relatively good asset quality, with limited exposures to complex credit instruments. We do not expect a major direct impact from the sub-prime crisis for European insurers, particularly for those companies with more advanced risk management practices.”