Moody’s ratings for European credit insurers is a continuously challenging economic environment as well as common trends in the sector of progressive relaxing in underwriting discipline.
It said that it believes that profitability patterns may differentiate industry players in 2011. In particular, reserves development and costs management will be important drivers of future profitability.
In 2011, some credit insurers may also initiate strategic moves, as a result of the crisis, or in anticipation of Solvency II, which may have various ratings impacts.
Moody’s added that results disclosed by credit insurers in 2010 saw a recovery in loss ratios to levels reported before the credit crisis. This reflected improvements in the global economy, as well as strong measures taken by all industry players to adapt their pricing and risks selection to a challenging claims environment.
It said it expects continuity to prevail in the macroeconomic environment over the next two years, with a high level of business insolvencies and a sluggish economic growth; therefore, spikes in loss ratios are also less likely, marking the entry of the industry into a new cycle.
It said that both sluggish economic growth and the potential for increased levels of self-insurance in reaction to the tightening of underwriting implemented during the crisis will serve to constrain credit insurers’ revenue going forward.
In addition, it believes loss ratios reported in 2010 are unsustainable, as insurers have started to relax their underwriting discipline in order to stimulate demand and mitigate pressures on revenue.
The fragile and uneven economic outlook also exposes credit insurers to large claims and local crises. Finally, in the short term, low financial and reinsurance results will also constrain credit insurers’ profitability.Reserves development and costs management will also be important drivers of future profitability, and these factors may vary by players.
It added that the industry’s new cycle will also be influenced by the preparation for Solvency II. It said that although this legislation is not yet finalised, QIS 5 specifications suggest that regulatory capital requirements for credit insurers are likely to rise. This is a challenge for the industry, which itself has just recovered from the crisis, and is expected to drive an increased focus on capital management in the coming years. In particular, the industry may choose to increasingly rely on reinsurance.
Although reinsurers are currently able to offer ample capacity, from which credit insurers can benefit in the short term, it said it believes this capacity may be volatile or costly in the long term, such that too high a dependence on reinsurers would be a credit negative for the industry.
Wednesday, March 9, 2011
How to Get Mortgages For Bad Credit
For people who want to pay off their debts and increase their credit score, they can always look for mortgages for bad credit. It is a loan which is derived from the home equity accumulated over the years in your home. This kind of loan can be quite beneficial for you since it can lower interest costs and monthly payments. It also consolidates your debts so that you can only pay once a month.
The two most accepted choices for bad credit mortgage loans are cash in mortgage finance and a home equity mortgage. These mortgages count on your equity, which will then be used to manage your debts. When you consolidate your debts, it can be arranged to combine all of your credit card payments, auto loans and other related debts into one easy monthly, lowered interest payment. In due time, you will notice that your credit score is improving.
When you apply for a bad credit mortgage loan, you need to increase your down payment as well as your cash reserves. A lower credit score means more money to pay for down payment. Credit scores below 600 require around 5% down payment. Lenders need to have confidence that you can still pay your loans even if you’re going through a financial situation.
You can always have the option to do your own research on this type of loan.
The two most accepted choices for bad credit mortgage loans are cash in mortgage finance and a home equity mortgage. These mortgages count on your equity, which will then be used to manage your debts. When you consolidate your debts, it can be arranged to combine all of your credit card payments, auto loans and other related debts into one easy monthly, lowered interest payment. In due time, you will notice that your credit score is improving.
When you apply for a bad credit mortgage loan, you need to increase your down payment as well as your cash reserves. A lower credit score means more money to pay for down payment. Credit scores below 600 require around 5% down payment. Lenders need to have confidence that you can still pay your loans even if you’re going through a financial situation.
You can always have the option to do your own research on this type of loan.
Can you reduce your credit card debts?
Millions of us are now struggling to pay off our credit cards. The good news is that as the numbers rise, banks are increasingly agreeing to reduce or even remove your debts. We highlight where you can go to get help.
BANKS wrote off an enormous £1.18 billion of card debt in only three months at the end of last year.
That’s up from £740 million in the previous quarter, and up from £894 million during the same period in 2009. The latest figures from the Bank of England show how UK banks are more willing to help those struggling with huge credit card bills.
But this certainly doesn’t guarantee that your debts will be written off. Banks will look closely at whether you can’t pay rather than won’t pay. If you’re squandering your spare cash, you’ll still be expected to meet your payments. Also, having your debts written-off will still damage your credit record.
As millions of borrowers struggle to bring down their card and loan debts, debt helplines and management agencies have seen a huge rise in the number of enquiries.
Steve Rees, managing director of private debt management agency Vincent Bond & Co, comments: “These statistics echo the trends we are seeing at Vincent Bond as the banks, and the collection agencies who represent them, are becoming more prepared to accept settlement offers, with larger amounts of the debts written off.”
As with most other private debt agencies, Vincent Bond charges every customer a fee.
However, there are several charities and government bodies who provide debt advice and management services for nothing. For example, the Consumer Credit Counselling Service and National Debtline are registered charities that provides free, impartial advice to people struggling to repay debts.
Citizens Advice, which also provides free independent advice, has raised concerns with the Office of Fair Trading (OFT) about a number of bad practices used by some commercial debt management firms. These include persistent cold-calling of consumers and taking unauthorised upfront fees.
A CCCS spokesman explained that if people have the ability to repay their debts, instant write-offs are not something they would advise.
Debt advisers put those who can pay their bills onto a debt management plan. They will negotiate with your creditors to make repayments more manageable - interest and other charges are often frozen while you get on a better financial footing. Then you make one monthly payment to the organisation which distributes it among your creditors.
The important thing is that you don’t stick your head in the sand: If you’re in financial trouble, it’s crucial to get professional, impartial help as quickly as possible.
BANKS wrote off an enormous £1.18 billion of card debt in only three months at the end of last year.That’s up from £740 million in the previous quarter, and up from £894 million during the same period in 2009. The latest figures from the Bank of England show how UK banks are more willing to help those struggling with huge credit card bills.
But this certainly doesn’t guarantee that your debts will be written off. Banks will look closely at whether you can’t pay rather than won’t pay. If you’re squandering your spare cash, you’ll still be expected to meet your payments. Also, having your debts written-off will still damage your credit record.
As millions of borrowers struggle to bring down their card and loan debts, debt helplines and management agencies have seen a huge rise in the number of enquiries.
Steve Rees, managing director of private debt management agency Vincent Bond & Co, comments: “These statistics echo the trends we are seeing at Vincent Bond as the banks, and the collection agencies who represent them, are becoming more prepared to accept settlement offers, with larger amounts of the debts written off.”
As with most other private debt agencies, Vincent Bond charges every customer a fee.
However, there are several charities and government bodies who provide debt advice and management services for nothing. For example, the Consumer Credit Counselling Service and National Debtline are registered charities that provides free, impartial advice to people struggling to repay debts.
Citizens Advice, which also provides free independent advice, has raised concerns with the Office of Fair Trading (OFT) about a number of bad practices used by some commercial debt management firms. These include persistent cold-calling of consumers and taking unauthorised upfront fees.
A CCCS spokesman explained that if people have the ability to repay their debts, instant write-offs are not something they would advise.
Debt advisers put those who can pay their bills onto a debt management plan. They will negotiate with your creditors to make repayments more manageable - interest and other charges are often frozen while you get on a better financial footing. Then you make one monthly payment to the organisation which distributes it among your creditors.
The important thing is that you don’t stick your head in the sand: If you’re in financial trouble, it’s crucial to get professional, impartial help as quickly as possible.
Credit Card Debt Management: How to Avoid Damaging your Credit
Once you have that thin rectangular piece of plastic, you already feel that you have the license to shop till you drop. While this experience may be fun in some instances, people tend to forget that they have to pay for it. One great shopping trip can then turn into a horrible regrettable event. Not only will this lead you to a great amount of debt, it also wreaks havoc on your credit score.
If you want to maintain a good credit score, it’s advisable to avoid late payments as much as possible. If late payment is your form of habit, get ready to kiss your 3 digit credit score goodbye? How can one pay on time then? Monitor your purchases.
What’s worse than late payments? Missed payments, of course! Forgetting to pay their credit card dues will lead to late payment fees. Some companies even issue high interest rates for missed payments. And so, the solution for this problem is the same as the one listed above: monitor your purchases. Exercise self-control as well. If you need to prioritize on gas and other necessities, then don’t think about buying Chanel. Wait for the time when you’ve organized your budget and expenses. Once you have paid your debts, you can then allow yourself a much deserved treat (in moderation, of course).
If you want to maintain a good credit score, it’s advisable to avoid late payments as much as possible. If late payment is your form of habit, get ready to kiss your 3 digit credit score goodbye? How can one pay on time then? Monitor your purchases.
What’s worse than late payments? Missed payments, of course! Forgetting to pay their credit card dues will lead to late payment fees. Some companies even issue high interest rates for missed payments. And so, the solution for this problem is the same as the one listed above: monitor your purchases. Exercise self-control as well. If you need to prioritize on gas and other necessities, then don’t think about buying Chanel. Wait for the time when you’ve organized your budget and expenses. Once you have paid your debts, you can then allow yourself a much deserved treat (in moderation, of course).
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