Non-life insurers’ investment income to drop in 2017
Tuesday, 05 02 2017, Category: Insurance and Reinsurance, Country: World
The investment income of global non-life insurance companies is expected to drop by around US$5 billion to US$15 billion, according to Moody’s Investors Service.
In a report released today titled: Global Insurance: Despite Rise, Still-Low Interest Rates a Threat To Profitability, Moody’s said that the prevailing low interest rates will continue to put pressure on insurers’ profitability and, in some cases, even solvency, especially in the three most exposed markets: Taiwan, Germany, and Norway. This is despite interest rates rising slightly in the third quarter of 2016.
Benjamin Serra, vice president and senior credit officer at Moody’s, added in a statement accompanying the report that investment income of life insurers is expected to decline by a larger amount, estimated at around US$20 billion to US$40 billion.
Source: Insurance Business