London, 16 February 2015 -- Switzerland's domestic insurers face credit-negative effects -- particularly in regard to lower retained earnings -- following the Swiss National Bank's (SNB) surprise decision last month to abandon the exchange rate peg between the Swiss franc and the euro, says Moody's Investors Service in a new report. In addition, the SNB's concurrent base rate reduction to -0.75% from -0.25% is credit negative for all insurers operating in Switzerland, because it will further reduce investment returns insurers earn on Swiss-denominated fixed-income securities.

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