Senior analysts from Fitch made the following comments during their presentations: "GDP in the major industrialised economies is expected to fall by 0.8% in 2009, its steepest decline since the Second World War. The combined impact of recession, fiscal stimulus packages and banking sector bail outs will see public debt ratios rise sharply across Europe, but the deterioration will be most marked in the UK." - Brian Coulton, managing director,Sovereigns.
"Widespread bank systemic crises have been averted by the recent actions announced by governments across Europe. The newly introduced measures are expected to allow bans to better address the extremely challenging economic situation over the remainder of 2008, 2009 and into 2010. The most unpredictable part of the crisis is behind the banks. However, they will not avoid the impact of the severe recession now ahead of us and credit growth will continue to slow, given the large and ongoing valuation losses, funding constraints, tightening underwriting standards and the re-pricing of risk." - Gerry Rawcliffe, Managing Director, EMEA Financial Institutions.
"With a few notable exceptions, insurers fared well through the credit crisis prior to the failure of Lehman Brothers in September. Since then, the extreme equity market volatility and further widening of credit spreads on corporate bonds have impacted balance sheets. Given the general strength of the industry going into the crisis, the insurance markets as a whole are not facing insurmountable challenges. Balance sheets exposures remain significant although most lines of business do not face the potential liquidity strains evident in the banking industry. Earnings for the industry will be pressured as recessionary conditions are expected to worsen loss experience for non-life insurers, and life insurers may struggle to meet either guarantees to policyholders or changing policyholders' expectations." - Greg Carter, Managing Director, EMEA Insurance.
