Moody’s changes U.K. life insurer views

Moody's Investors Service said it affirmed the ratings and changed the outlooks to negative from stable for Legal & General Group plc, Prudential UK, Standard Life plc and Royal London Mutual Insurance Society Ltd. and to stable from positive for Aviva plc and Scottish Widows Ltd.

Prudential Public Ltd. Co.’s and AIG Europe Ltd.’s ratings were affirmed with a stable outlook and Old Mutual Wealth Life Assurance Ltd.’s rating was affirmed with a negative outlook.

The actions follow a referendum vote in favor of the United Kingdom leaving the European Union and the recent change in the outlook of the U.K.'s Aa1 government bond rating to negative from stable.

"Following the ‘leave’ vote, we expect heightened uncertainty, diminished confidence and lower spending and investment to result in weaker economic growth in the UK reducing insurers' business growth potential and profitability. Furthermore, financial market volatility will weigh on insurers' capitalization," Moody’s associate managing director Antonello Aquino said in a news release.

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