(Repeat for additional subscribers)
April 22 (The following statement was released by the rating agency)
Fitch Ratings expects Italian non-life underwriting
results to deteriorate in 2014, with claims frequency increasing and premium
rates continuing to fall. Life sales are volatile, but should achieve
Fitch believes that the eurozone debt crisis remains a threat to Italian life
insurers' creditworthiness despite the crisis having shown signs of tangible
improvement in 2012 and 2013. Italian life insurers are significantly exposed to
Italian government and corporate debt. Fitch currently rates Italy 'BBB+', with
a Negative Outlook.
Fitch expects Italian insurers' non-life premium income to remain under pressure
in 2014 due to declining rates in the dominant motor market and stiff
competition in commercial lines. As a result, prospects for growth remain
Fitch expects life sales to continue to grow in 2014, albeit at a slower pace
than in 2013. Life profitability is much harder to predict, given the volatility
in the Italian bond market, as some of the fluctuation in the prices of bonds on
insurers' balance sheets feeds directly into their reported profit.
The 'Italian Insurance Market Dashboard' is available at www.fitchratings.com or
by clicking on the link below.
Link to Fitch Ratings' Report: Italian Insurance Dashboard FY13