Fitch warns of tough times for credit insurers

Fitch Ratings is “remaining cautious” on the credit insurance industry, amid concerns that banking turmoil could lead to rising corporate bankruptcies, in turn affecting credit insurers' underwriting performance. Marc-Philippe Juilliard, senior director in Fitch's insurance team, said: “Credit insurers underwrite corporate trade receivables, resulting in a high correlation between underwriting performance and corporate bankruptcies. "Corporates face a double-whammy of slowing profits as the world economy cools and of diminishing funding from banks. Credit insurers are expected to post lower net income in 2008 compared... [read full story]