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Coronavirus Claims of Estimated €80B Are ‘Manageable’ for Europe’s Insurers: Moody’s

July 17, 2020

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The coronavirus outbreak has had an adverse, but manageable, impact on the European insurance sector, leading to a drop in company earnings rather than capital erosion, says Moody’s Investors Service in a report.

Central bank intervention has reversed much of the fall in equity markets and widening of credit spreads witnessed in the first quarter, and the insurance sector has taken advantage of attractive market conditions to boost its capitalization by issuing hybrid debt, according to Moody’s analysts. They regard this development as a positive, as new issuance has only modestly increased the insurance industry’s leverage from a low level.

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