Floods in France, Germany in May/June are credit-negative -Moody's

LONDON, June 20 (Reuters) - Insured losses for floods in France and Germany in May and June will be credit-negative for European property and casualty insurers and reinsurers because they will lower the insurers’ 2016 profits, ratings agency Moody’s said on Monday.

Citing previous loss estimates from the French and German insurance associations of 0.9-1.4 billion euros ($1.02-1.59 billion) for France and 1.2 billion euros for Germany, Moody’s said it expected AXA and Allianz to be among the insurers most affected.

Using the same loss estimates, insurance ratings agency AM Best said first-half earnings of French and German insurers would be dampened but said it did not expect any negative rating actions on the insurers.

$1 = 0.8818 euros Reporting by Carolyn Cohn, editing by Sinead Cruise