LONDON (Reuters) – The credit ratings of European insurers would be cut if Greece was to suffer a disorderly exit from the euro, hit by a slump in the value of their investments, credit rating agency Fitch said on Wednesday.
Worst-hit would be those in fiscally-stretched countries such as Italy and Spain, seen as particularly vulnerable because of their large holdings of their own countries' distressed sovereign and bank debt.
“A disorderly Greek exit could have a materially negative impact on the ratings of European insurers, with contagion hitting credit quality and asset values, leading to a squeeze on insurers' capital,” saidChris Waterman, head of European insurance at Fitch.
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