U.S. life insurers have moderate exposure to European financial institutions and sovereigns, but the credit impact will be modest, says Moody’s Investors Service in a new special report, “U.S. Life Insurers Have Moderate Exposure to European Financial Institutions and Sovereigns; Credit Risk Modest Relative to Capital.”
The report analyzes U.S. life insurer holdings domiciled within the 27 European Union countries.
Moody’s-rated U.S. life insurers had a total exposure of $57 billion at year-end 2011, approximately 20 percent of the industry’s statutory capital, says Moody’s. The industry’s exposure to the more challenged peripheral Euro area countries is limited and declining.