Fitch Ratings said today that balance sheet pressures for insurance and reinsurance companies globally are becoming more severe as insurers experience greater unrealized market value losses, and take impairments, on their investment portfolios. As such, Fitch expects a noteworthy ramp up in such losses to be reported by many insurers in the third quarter.
Accordingly, Fitch has revised the Rating Outlook to Negative from Stable for 12 insurance and reinsurance sectors globally, reflecting primarily the fall out from significant deterioration in the global financial markets, and its impact on insurers' balance sheets and financial flexibility. Fitch is also confirming its prior held Negative Outlook on six insurance sectors, including the U.S. life insurance sector, which Fitch revised to Negative from Stable on Sept. 29.
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