Iran conflict seen as earnings event for insurers – Fitch

The ratings firm said war is generally excluded from standard property/casualty and specialty policies, meaning direct insured losses should be modest and manageable. The greater risk for ratings, however, lies in second‑order effects if the conflict drags on – including higher loss‑cost inflation, weaker asset values, rising credit defaults and potential downgrades of exposed sovereigns and banks that feed through to insurer balance sheets.