Financial news in brief

Rating dip for Prudential

Moody’s has downgraded the long-term insurance financial strength ratings of Prudential Insurance Company of America (PICA) and its affiliates from A2 to AA3. The ratings agency said the downgrade was driven by Prudential’s reduced profitability, capitalisation and financial flexibility, as well as its sensitivity to further capital strain.

Profit down 54% at Coface

Coface reported a 54% drop in its net profit to €94m (£87.5m) from the €204m it reported in 2007. However, turnover rose 7.1% to €1.68bn from €1.57bn in 2007. The credit insurer said: “An increased claims rate has caused a marked fall in profit, with the current loss of credit insurance for the year at minus €25m. But contributions to profit by services (+22%) and factoring (+27%) – both of which continue on a sharp upwards trend – have provided a positive operating profit of €136m.”

Glacier income falls

Glacier Group, the European insurer and reinsurer, has reported a $43.3bn (£28.8bn) decrease in net income to $26.2m for 2008. Total gross written premium, however, increased by 22.2% to $569.3m.