European insurers’ investment income is expected to decline by €10bn-£25bn every year in the next five years, if interest rates and investment allocation remain unchanged, says Moody’s.
“Based on our analysis of EIOPA’s reference investment 
portfolios, we expect European life insurers’ investment yields to decline by 10-30bps every year in the next five years, assuming unchanged interest rates and investment allocation.
European P&C insurers’ investment yields will decline further given the shorter duration of their assets,” says Benjamin Serra, a vice president and senior credit officer at Moody’s.