Spanish bank consolidation to benefit insurers

A report by rating agency Moody’s has found that insurers are set to benefit from consolidation of Spanish banks.

This is due to the major role that those banks play in the distribution of life products, according to the report.

The report provides three potential scenarios illustrating the credit effects on insurers of the redistribution of bancassurance agreements.

"We believe that large insurers with a competitive advantage in their distribution network through stronger banking groups are the likely candidates to benefit from the redistribution of insurance market shares," said Laura Perez Martinez, a Moody's Analyst and author of the report.