Best’s Commentary: Adverse Economic Environment Driving Significant Unrealised Losses in European Insurers’ Investment Portfolios

Rising interest rates, widening spreads and volatile equity markets have contributed to significant unrealised losses in European insurers’ balance sheets, according to analysts at insurance credit rating agency AM Best.

In a new Best’s Commentary, “Adverse Economic Environment Driving Significant Unrealised Losses in Insurers' Investment Portfolios,” analysts monitoring European insurers’ mid-year 2022 results state that it is becoming increasingly apparent that large unrealised losses have been incurred on their investment portfolios. They attribute these losses to the combined effects of rising interest rates, widening credit spreads and volatile market performance, which have led to a decrease in the market values of investments.

Going forward, AM Best will continue to monitor the impact of the current economic environment on insurers and provide further commentary as deemed appropriate.

To access a complimentary copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=322703.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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