Insurers to weather GREECE-fuelled market volatility - AM Best

13 July 2015 —
Euro zone insurers are well placed to weather volatility around a potential Greek exit from the currency bloc, although contagion to other countries would be more problematic, ratings agency AM Best said.

Greece is negotiating with its international creditors on the terms of a new bailout package, ahead of a key meeting on Sunday that could move it closer to 'Grexit' if a deal is not reached.

"The greatest risk facing the European insurance industry lies in the general instability of the Eurozone area and the potential contagion to other countries," they wrote, although any fall-out would be "much more limited than that experienced during the European sovereign debt crisis".

On Grexit, AM Best said it would not materially hit earnings for Europe's top insurers: "While European insurers have operations or subsidiaries in Greece, there is no meaningful presence that is likely to have a significant drag on earnings at group level."

That said, some insurance segments, such as credit insurance - which protects the exporter for the risk of non-payment from the Greek buyer - were proving "increasingly challenging". Read the full story
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