Best’s Market Segment Report: AM Best Revises Italy Life Outlook to Negative

LONDON--()--AM Best is revising its market segment outlook on Italy’s life insurance market to negative. Key factors that have led to the change in outlook include the exposure of earnings and solvency positions to material asset devaluations and ongoing volatility across all asset classes driven by the coronavirus (COVID-19) pandemic, as well as the sensitivity of Italian life insurers’ balance sheets to changes in credit spreads.

A new Best’s Market Segment Report, titled, “Market Segment Outlook: Italy Life,” also cites an expected decline in premium volumes, and an increased risk of bond defaults due to deteriorating economic conditions, as negative trends.

The report notes that these factors are partially mitigated by the effective asset-liability matching in place across the industry, a generally healthy margin between investment income and average minimum guarantees on traditional life policies, and the sector’s ability to absorb a degree of financial market volatility due to buffers in solvency levels.

To access a complimentary copy of this market segment outlook, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=296010.

To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

José Berenguer
Financial Analyst
+31 20 308 5429
jose.berenguer@ambest.com

Michael Dunckley, CFA
Associate Director
+31 20 308 5422
michael.dunckley@ambest.com

Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

Contacts

José Berenguer
Financial Analyst
+31 20 308 5429
jose.berenguer@ambest.com

Michael Dunckley, CFA
Associate Director
+31 20 308 5422
michael.dunckley@ambest.com

Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com