Press Release - MAY 29, 2019

AM BestTV: Outlook for Italian Non-Life Sector Remains Stable, Says Associate Director


CONTACTS:
 Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - MAY 29, 2019
In this AMBestTV episode, Michael Dunckley, associate director, AM Best, said Italian non-life insurers should be bolstered by growth in liability and health coverages. Click on http://www.ambest.com/v.asp?v=italynonlife_english419 to view the entire program.

AM Best is maintaining a stable outlook on the Italian non-life insurance sector. Dunckley highlighted some of the reasons for the stable outlook.

“The key factors underlying the stable outlook are the sustained strong operating profitability of Italian non-life insurers and the resilience of the solvency levels of those insurers despite some vulnerability to spread widening in Italian government bonds,” said Dunckley.

Dunckley also spoke about the growth environment in Italy, as well as what factors could cause AM Best to revise its outlook on the sector to negative.

“The Italian economy entered a technical recession in the third and fourth quarters of 2018. The prognosis for growth going forward is quite weak. Nonetheless, I think that there could be some growth in the sector. The main things that could create negative pressure on the outlook would be a deterioration in operating results and a deterioration in solvency as a result of a widening in spreads on Italian government bonds decreasing the value of those assets in the balance sheet and impacting the capital of insurance companies,” he said.

To access a copy of this market segment report, titled, “Market Segment Outlook: Italy Non-Life,”visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284421.

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  • How AM Best Rates Insurance-Linked Securities-Affiliated Collateralized Reinsurers: Highlights from a recent webinar in which AM Best analysts examine how they rate reinsurers affiliated with insurance-linked securities: http://www.ambest.com/v.asp?v=ils519 .

  • Inland Marine: ‘A Market in Transition’: The inland marine space is trying to define itself as rates remain insufficient for the risks that exist. Producers had $24.5 billion last year in direct premiums written in construction, cargo and fine arts: http://www.ambest.com/v.asp?v=imuawrap519 .

  • Increasing Cargo Risk Is Testing Resourcefulness of Inland Marine Carriers: A panel of experts said cargo carriers are assuming a broader range of exposures but are dealing with a narrowing base of clients: http://www.ambest.com/v.asp?v=cargopanel519 .

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AM Best is a global rating agency and information provider with a unique focus on the insurance industry.