The FINANCIAL — London/Frankfurt-10 October 2011: Fitch Ratings is holding a teleconference to discuss the ratings outlook for the German life insurance sector on Monday 10 October at 10.30 UK time/11.30 Central European time.
Fitch considers German life companies to be well prepared to meet the sector's current challenges, and does not foresee a significant number of rating changes over the next 12-24 months, according to its recently published report, 'German Life Insurance Outlook: Maintaining Capital in Turbulent Times'.
Fitch views the low interest rate environment and the pronounced volatility of the capital markets as the main challenges for German life insurers. There is considerable pressure on the insurance companies' ability to earn a decent return on their investments, although companies appear better positioned to surmount these challenges than during 2000-2003. While the average guarantee on German life insurance contracts is above the current running yields on ten-year German government bonds, the agency expects German life companies to manage the situation.
Stephan Kalb, Senior Director, and Christoph Schmitt, Director, in Fitch's Insurance team will speak on the call. There will be time for participants to ask questions.
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