UK - Negative outlook for UK life sector
Saturday, 12 03 2016, Category: Rating, Country: United Kingdom
A combination of sustained low investment yields and pressure on profits as a result of regulatory scrutiny into how insurers treat their customers, has prompted Fitch Ratings to change the sector outlook for UK life insurance to negative in 2017.
However, Fitch also said its rating outlook is stable, due to insurers’ diverse businesses and strong capitalisation that will help them to absorb the pressures they face. Most UK life ratings are likely to be affirmed over the next one to two years, the rating agency said.
UK life insurers are expected to have limited impact from Brexit, given the industry's domestic focus and the likely regulatory equivalence between UK and EU capital requirements after Brexit.
Source: Intelligent Insurer