Moody's Ratings announced that the outlook for the UK life insurance and property and casualty (P&C) sectors remains stable, despite ongoing economic challenges. The rating agency noted that while slower economic growth might reduce demand for discretionary life and savings products, strong activity in the pension sector and consistent sales of mandatory P&C policies are expected to support insurers' revenues. Elevated interest rates are also seen as a positive factor for investment income. For life insurers, pension risk transfers will continue to be a significant earnings driver, though increasing competition could pressure margins. In the P&C sector, Moody's expects performance to moderate as prices have likely peaked, but should remain sound. The report forecasts that UK insurers' revenues will stay resilient through 2025, with modest GDP growth expected to recover in 2026, which would benefit the commercial P&C segment. Overall, Moody's concludes that the UK's insurance sectors are in a good position to maintain stable performance due to strong capital, disciplined management, and steady demand for compulsory and pension products.
Moody's Maintains Stable Outlook for UK Life and P&C Insurance Sectors Amid Economic Pressures
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