If the current problems cause a wider lack of confidence in investment markets, then there could be some impact, but overall reinsurers’ exposure to sub-prime mortgage losses is “modest,” noted Mark Nicholson, a director in Fitch’s insurance group in London.
A managing director in Fitch’s insurance group, Chris Waterman, stated that while reinsurers may have some exposure to directors and officers, or errors and omissions claims arising from the sub-prime crisis, it’s too early to tell the full impact.
A report by Fitch called “Reinsurance Review and Outlook: Conditions and Trends Support Stable Ratings” was published today.
The rating agency deems the reinsurance industry as having a stable outlook.