A.M. BestTV: Brexit Fallout Expected to Persist

OLDWICK, N.J.--()--In this A.M.BestTV episode, Catherine Thomas, A.M. Best senior director-analytics, discusses how the post-Brexit financial market volatility leaves the United Kingdom (U.K.), and in particular, European life insurers, more vulnerable. Click on http://www.ambest.com/v.asp?v=brexit716 to view the entire program.

In the June 23 referendum, 52% of U.K. citizens decided to relinquish the U.K.’s European Union membership.

“A.M. Best does not expect to take any rating actions in the near term as a direct consequence of the decision,” said Thomas. “However, the financial market’s volatility, which followed the decision, is likely to have an impact on insurers’ half-year results and balance sheets as equity market volatility is expected to persist.”

Thomas also believes that life insurers are more vulnerable to the effects of financial market volatility.

Looking to the future, Thomas said, “In the longer term, the uncertainty created by the decision and the effect on investors and consumer confidence is likely to slow economic growth with negative implications for both revenue and profitability prospects for U.K. insurers.”

Recent episodes of A.M.BestTV include:

  • Some Caribbean Insurance Markets Feeling Economic Pain More Than Others: A.M. Best Senior Economist Meg Mulry and Senior Financial Analyst Ricardo Longchallon discuss the insurance markets of the Caribbean region, saying that although each market is at a different stage of development, all continue to grow despite recent fiscal and economic imbalances: http://www.ambest.com/v.asp?v=caribbean716.
  • Program Business Heads for Growth: A panel of insurers and producers discuss the current state of the program and specialty sectors, including emerging opportunities, changing relationships between carriers and producers and how insurance entrepreneurs are creating new distribution channels: http://www.ambest.com/v.asp?v=programmarkets716.
  • Middle East and North Africa Insurers Tested by Falling Oil Prices, Political Instability: A.M. Best Senior Financial Analyst Myles Gould examines the relationship between fluctuating oil prices, regional political instability and the business environment for insurers operating in the Middle East and North Africa (MENA) regions: http://www.ambest.com/v.asp?v=menaoil716.
  • U.S. Health Insurers Ratchet Up Debt in Wake of the Patient Protection and Affordable Care Act: A.M. Best Managing Senior Financial Analyst Doniella Pliss and Financial Analyst Craig Draghi discuss why U.S. health insurers have nearly doubled their borrowing levels since 2011: http://www.ambest.com/v.asp?v=healthborrowing616.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Lee McDonald, +1-908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, +1-908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com