Moody's Emphasizes Stability Of Western European Life Insurers

“The overall strength of the European life insurance industry is underpinned by the fact that the default of a life insurance company has so far been a rare or even unknown event in many European countries,” the analysts write in a summary of the report.

“Solvency is rarely seen as an issue for the large European life insurers, which maintain a level of financial leverage that is reasonable and moderate overall compared with their debt capacity,” the analysts add.

The analysts predict the aging of the European population will do more to help life insurers?f retirement programs than to hurt them.

Although the oldest Western European baby boomers may soon begin drawing funds from retirement accounts, younger boomers are continuing to pour money in, and Western European governments are supporting private financial services companies by encouraging greater use of private retirement savings programs, the analysts write…