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Stress testing shows that around 10% of European insurers would fail to meet future minimum...

Stress testing shows that around 10% of European insurers would fail to meet future minimum capital requirements in an adverse economic scenario, leaving the sector as a whole €4.4B ($6.37B) short. Overall, though, the sector is well capitalized and prepared for shocks.
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  • CautiousInvestor
    , contributor
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    Reuters had previously reported it would be likely that one out of six banks fail with much political wrangling as to which banks and countries would be stigmatized, much like the highly theatrical stress tests conducted in the US. Incredulously, the regulators charged with conducting the stress tests in the EU (seekingalpha.com/symbo...) are NOT including a scenario under which one or more of the little PIIGS actually default. Since this is the largest threat facing Europe, they simply address the issue by avoiding it and using a more benign scenario under which there is a loss of value in sovereign PIIG debt. Amazing.
    5 Jul 2011, 09:02 AM Reply Like
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