Comment from Best: Adverse economic environment leading to large unrealized losses in European insurers’ investment portfolios

AMSTERDAM–(BUSINESS WIRE)–Rising interest rates, widening spreads and volatile equity markets have contributed to large unrealized losses on the balance sheets of European insurers, according to analysts at credit rating agency d ‘insurance AM Best.

in a new Comment by Best, “An unfavorable economic environment leading to significant unrealized losses in insurers’ investment portfolios”, analysts monitoring European insurers’ mid-year 2022 results say it is becoming increasingly clear that large losses unrealized have been incurred on their investment portfolios. They attribute these losses to the combined effects of rising interest rates, widening credit spreads and market volatility, which caused the market value of investments to decline.

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

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