European insurers’ net asset values drop for the first time in decade

The sharpest contraction was seen in the life account which was reduced by 16% in nominal terms and by 11% in real terms

The drop in European Union economic growth in 2008 to 0.9% from the previous year’s 2.7% left its mark on the insurance markets of the region, according to the CEA’s preliminary figures for 33 countries, 27 of which are EU members. CEA reported a nominal decline of 16% in life business and unchanged non-life business. Europe’s development fell behind substantially in both life and non-life business, which according to Swiss Re data grew by 2.0% in life and 5.5% in non-life during the same period. The European figures compare with 2007 expansion rates of 2.7% and 4.3% respectively. The latest figures reflect the depreciation of sterling against the euro during 2008, this diminishing the apparent rate of growth during the year.