No-deal Brexit likely to impact insurers’ ratings less than other sectors: S&P

UK insurers will not be as badly affected as some other sectors in terms of ratings downgrades in the event of a no-deal Brexit.

That’s according to ratings agency S&P Global ratings. “The most significant credit implications resulting from a no-deal Brexit for U.K. insurers are likely to come from the short-term and long-term disruptions to the country's economy and financial markets,” said S&P.

It added: “However, we believe the initial impact on U.K. insurers' ratings will be muted, with outlook revisions, rather than widespread downgrades, more likely to occur if the downside economic and market scenarios occur.”

Looking at the wider impact across all sectors, S&P said that an impact of a no-deal Brexit from the EU could lead to a few rating downgrades, negative outlooks, or CreditWatch actions on issuers with insufficient rating headroom to weather the related economic slowdown or disruption.

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