Insurer's investment portfolios will suffer minimal repercussions from the sub-prime mortgage meltdown, but resulting legal actions will probably cause professional liability claims, rating agency executives said.
In a conference call held today, executives with Moody's Rating Service said only one to two percent of insurer's investment portfolios are invested in subprime mortgage securities, amounting to little impact on their business and subsequently not affecting their ratings.
Ted Collins, group managing director, said the impact applied globally to the insurance industry; however mortgage insurers and financial guarantors could be most impacted.
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