U.K. Life Insurance Ratings At Five-Year Low: S&P

S&P sees continued pressure on ratings, with 65% on the top 40 U.K. life insurance groups–representing 84% of net premiums written marketwide–on negative outlook or CreditWatch negative ratings. Future ratings actions are, however, more likely to be related to business and operating capabilities than solvency or capital adequacy issues, the rating service says.

“Market concerns over the solvency position of U.K. life insurers are exaggerated for securely rated companies,” says Waterhouse. “Solvency and capital issues have had a notable impact on the market in recent months, but the key competencies for success going forward will stem from insurers’ ability to improve expense efficiencies, enhance profitability and develop less capital-intensive products.”