Outlook positive for global insurers
Standard & Poor’s (S&P) says global insurers are well placed to ride out the turbulence caused by the American subprime meltdown.
The ratings agency has released a report saying insurers have been “caught up” in the fear directed at Wall Street, the federalised mortgage intermediaries and the banking sector. But they shouldn’t have been.
In Global Insurers Weather the Credit Turmoil – Thus Far, S&P says few international insurers face immediate negative rating actions beyond those already assigned to the major reinsurance, property and casualty and life sectors.
“Only a few insurers have lost enough capital, liquidity, or earnings to require ratings actions,” the report said.
While S&P notes some insurers are more affected by the crisis than others, it says many insurers in North America, Europe and the Asia-Pacific have only modest exposures to subprime-related securities.
It says insurance companies have further mitigated risk by maintaining capital levels in the face of weak product lines, reducing common stock buybacks or cutting dividends.
The ratings agency has released a report saying insurers have been “caught up” in the fear directed at Wall Street, the federalised mortgage intermediaries and the banking sector. But they shouldn’t have been.
In Global Insurers Weather the Credit Turmoil – Thus Far, S&P says few international insurers face immediate negative rating actions beyond those already assigned to the major reinsurance, property and casualty and life sectors.
“Only a few insurers have lost enough capital, liquidity, or earnings to require ratings actions,” the report said.
While S&P notes some insurers are more affected by the crisis than others, it says many insurers in North America, Europe and the Asia-Pacific have only modest exposures to subprime-related securities.
It says insurance companies have further mitigated risk by maintaining capital levels in the face of weak product lines, reducing common stock buybacks or cutting dividends.