European insurers exposure to problem sovereigns 'manageable'

Despite the spectre of default that hangs over the European sovereign bond market the region’s insurers’ exposure to Greek, Irish and Portuguese (GIP) sovereign bonds  is manageable and unlikely to have significant rating implications, according to a report by rating agency Fitch.

In a report titled, GIPs Exposure Manageable, But Broader Dislocation of Financial Markets is Primary Concern, the agency is sanguine over the direct impact of a bond default on insurers’ balance sheets, instead its