Fitch: Insurers can absorb Greek debt swap

European insurers will not be adversely affected by the recent Greek debt swap as they have already written down their holdings according to Fitch Ratings.

Fitch said that European insurers generally operated robust impairment policies and had written down Greek sovereign debt in line with falling market prices.

They now hold Greek bonds at around 20% to 25% of their historical/amortised cost and therefore are unlikely to incur further losses from the debt swap, which was widely supported by the sector.

According to the ratings agency, since the outset of the sovereign debt crisis insurers have gradually de-risked their balance sheets.

“Therefore