Moody’s Warn European QE Credit Negative For Insurers
2015-01-22 17:57:11.800 GMT
By Sarah Jones
(Bloomberg) -- Moody’s senior credit officer Benjamin Serra
says QE will have biggest impact on life insurers because
depressed interest rates for longer will squeeze investment
margins, according to statement.
* Says life insurers predominantly invest in fixed income inc.
sovereign bonds
* Says while balance sheets will look healthier as asset
prices rise, gains won’t be realized because insurers hold
securities until maturity
* QE impact will be strongest in Germany, the Netherlands
where high guarantees on life insurance products are
offered, mismatch of assets and liabilities highest
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To contact the reporter on this story:
Sarah Jones in London at +44-20-3525-2419 or
sjones35@bloomberg.net
To contact the editor responsible for this story:
Edward Evans at +44-20-3525-3190 or
eevans3@bloomberg.net
2015-01-22 17:57:11.800 GMT
By Sarah Jones
(Bloomberg) -- Moody’s senior credit officer Benjamin Serra
says QE will have biggest impact on life insurers because
depressed interest rates for longer will squeeze investment
margins, according to statement.
* Says life insurers predominantly invest in fixed income inc.
sovereign bonds
* Says while balance sheets will look healthier as asset
prices rise, gains won’t be realized because insurers hold
securities until maturity
* QE impact will be strongest in Germany, the Netherlands
where high guarantees on life insurance products are
offered, mismatch of assets and liabilities highest
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Sarah Jones in London at +44-20-3525-2419 or
sjones35@bloomberg.net
To contact the editor responsible for this story:
Edward Evans at +44-20-3525-3190 or
eevans3@bloomberg.net