Artemis ILS NYC 2020

Menu

Reinsurance News

Italian insurance industry outlook held at stable by Moody’s

3rd December 2019 - Author: Charlie Wood

Moody’s Investors Service has maintained its stable outlook for the Italian insurance industry amid a moderate premium growth in property and casualty and a favourable shift in the business mix for life insurers.

Italy-Flag-MapUnderwriting profitability for P&C remains strong, notes Moody’s, driven in part by a recovery in premium growth and still-high reserve releases.

Moody’s expects reserve releases to taper off gradually, resulting in slightly lower but still strong profitability.

“The macroeconomic environment for Italian insurers remains challenging, as reflected in low economic growth and flat unemployment” said Christian Badorff, a Vice President at Moody’s.

“Nonetheless, the sector’s credit fundamentals continue to be relatively robust, reflecting healthy profitability and capitalisation.”

Additionally, life insurers have in recent years significantly reduced the high guaranteed rates of return promised to savings customers.

Moody’s says this, combined with relatively high investment returns, is supporting their investment margins.

The sector is also shifting towards hybrid products, which offer lower guaranteed rates, and towards unit-linked products, which shift the investment risk to the customer.

The industry’s solvency II ratios meanwhile are healthy at current levels, but solvency capital requirements generally do not reflect the credit risks associated with its large domestic sovereign bond exposures.

At the same time, Moody’s notes that solvency II ratios continue to be highly sensitive to movements in sovereign credit spreads.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Gallagher adds pacific northwest marine team, book

Global insurance brokerage Arthur J. Gallagher & Co has completed a transaction to acquire Brown & Brown Washington's pacific northwest...

Close