Coronavirus to Hit Insurer Investments

Investment losses rather than claims.
March 4, 2020

Investment losses rather than claims will likely cause the biggest hit to insurers from the coronavirus outbreak, according to a report from Moody’s Investor Services Inc. Trade credit insurers, however, could see higher claims resulting from pressure on China’s economy, the New York-based rating agency said in a report Monday.

“Falling and volatile financial markets will weigh on insurers’ capitalization and profitability,” the report said. “We also expect weaker investment gains on insurers’ equity portfolios, a steady source of earnings support in recent years,” Moody’s said.

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