Unfavorable economic environment leading to large unrealized losses in the investment portfolios of European insurers

AMSTERDAM, August 09, 2022–(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 the agency. insurance credit rating 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 led to a decline in the market value of investments.

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

To access a free 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 specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Pierre Tournier
Associate Director, Analytics
+31 20 308 5423
[email protected]

Tim Prince
Director, Analytics
+44 20 7397 0320
[email protected]

Richard Banks
Director, Industrial Research – EMEA
+44 20 7397 0322
[email protected]

Edem Kuenyehia
Director, Market Development & Communications – EMEA & AP
+44 20 7397 0280
[email protected]