The U.S. life insurance industry’s direct exposure to Enron Corp. was about $3.9 billion at year-end 2000, says a report from Moody’s Investors Service. Though substantial in dollars, this amounts to less than 2% of the consolidated statutory capital base of Moody’s rated U.S. life insurance universe, it notes. Moody’s believes this exposure will have limited credit impact on those companies.
“Moody’s has not identified any company that we believe has sufficient Enron exposure to cause us to have significant credit concerns,” says Arthur Fliegelman, a vice president and senior credit officer with Moody’s and a co-author of the report.
Moodys does not expect to take any rating action due to Enron-related investment exposures, Fliegelman adds.