European nonlife insurers’ strong financial position going into worldwide financial turmoil helped the companies weather investment losses, rising claims costs, increased competition and flat product demand, rating agency A.M. Best Co. Inc. said in a special report.
The Monday report said nonlife insurers in Europe are showing resilience because their capitalization was strong when the weak worldwide economy began in late 2007.
“By the end of 2008, this position had been dented by the financial crisis, but the weakening has been insufficient to drive widespread downgrades,” Oldwick, N.J.-based A.M. Best said in the report.
Premium growth was down in many sectors in 2008, with construction and commercial property insurance hit particularly hard due to the building slump, shrinking investment in manufacturing and plant closures.
Best said it expects nonlife insurers in Europe to continue performing well enough that their financial-strength ratings are expected to remain stable over the next 12 months.
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