While Standard & Poors recent downgrade of U.S. long-term sovereign debt is not expected to have a meaningful direct impact on property and casualty insurers, the indirect impact of the downgrade, as a reflection of economic uncertainty, could be more significant and could prolong the soft market cycle, according to...

While Standard & Poors recent downgrade of U.S. long-term sovereign debt is not expected to have a meaningful direct impact on property and casualty insurers, the indirect impact of the downgrade, as a reflection of economic uncertainty, could be more significant and could prolong the soft market cycle, according to...

Troubles experienced by some mortgage insurers could present opportunities for better-capitalized competitors, but those companies will have to demonstrate the ability to maintain regulatory compliance, Moody’s says.

The California Earthquake Authority last week turned to the capital markets and tapped a new special-purpose vehicle to securitize its risk, a move which is credit-negative for the reinsurance industry, according to Moody’s Investors Service.

The market is beginning to turn, Swiss Re executives say, as the global reinsurer reports that its 2011 second-quarter net income rose to $960 million, compared to $812 million in the 2010 second quarter.

Standard & Poor’s has lowered PMI Mortgage Insurance Co.’s financial-strength ratings to CCC-minus from B-minus, saying statutory insolvency and/or regulatory action on the company is possible by the end of the year.

Proposed changes to insurance-contract accounting standards are running into delays amid vocal opposition, but whatever final conclusions ultimately emerge, they are unlikely to have a broad impact on credit ratings since new rules, by themselves, do not alter the economic position of an entity, according to Moody’s.

A tropical-storm warning is in effect for Puerto Rico and other locations in the vicinity as Tropical Storm Emily moves slowly into the area.