LONDON, Oct. 6 (Reuters)—European insurers are financially robust and unlikely to require injections of fresh capital, barring an Italian sovereign default or break-up of the single currency area, analysts said.
European insurance stocks have on average lost a third of their value since February, partly reflecting fears insurers could be forced to raise cash to offset impairments on their government bond holdings as the eurozone crisis deepens.
This week's state bailout of Franco-Belgian lender Dexia , laid low in part by heavy exposure to distressed Greek debt, has stirred memories of the 2008 crisis, when some insurers had to be propped up by the taxpayer alongside big chunks of the banking sector.
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