There is nothing wrong with the European life insurance industry, according to international rating agency Fitch. It has merely suffered from the ups and downs the global market has experienced in recent months.

The decline in international equity markets has heavily affected many companies’ balance sheets. Senior Director Insurance Greg Carter said some companies have faced solvency issues because of reduced capital levels. As a result, Fitch suggests downgrades of insurer financial strength ratings may be possible.

On the whole, Fitch remains positive that leading life insurers will continue to take advantage of their strong business franchises to generate new business opportunities.