Capital levels vulnerable, says Moody’s
Moody’s Investors Service says the world insurance industry shouldn’t get too carried away with stable capital levels fuelled by improving share and debt markets.
The ratings agency says in a new report that recent signs of recovery can be traced largely to broad-based intervention by governments. The return of investor confidence may prove fickle.
Moody’s MD Ted Collins says ratings are based on the assumption that the market recovery will continue – if somewhat sluggishly – although market gains could prove short-lived if recession pressures disrupt consumer and investor activity.
“The difficulty of the recovery can be seen clearly in the struggles of insurers and investment managers,” Mr Collins said in a statement.
“Their macro-economic indicators – and ratings – may have reached bottom, but the fundamentals of financial institutions are still vulnerable to a number of uncertainties.”
The ratings agency says in a new report that recent signs of recovery can be traced largely to broad-based intervention by governments. The return of investor confidence may prove fickle.
Moody’s MD Ted Collins says ratings are based on the assumption that the market recovery will continue – if somewhat sluggishly – although market gains could prove short-lived if recession pressures disrupt consumer and investor activity.
“The difficulty of the recovery can be seen clearly in the struggles of insurers and investment managers,” Mr Collins said in a statement.
“Their macro-economic indicators – and ratings – may have reached bottom, but the fundamentals of financial institutions are still vulnerable to a number of uncertainties.”