Motor insurers hit by Moody’s

RATINGS agency Moody’s yesterday said the Competition Commission’s (CC) probe into the UK car insurance industry will negatively impact the credit outlook of major insurers.

Firms affected by the announcement include market leader Direct Line, which is due to float on the London Stock Exchange next week.

“The CC’s investigation is credit negative because at a minimum it will create uncertainty for the industry and more significantly could result in lower motor premium rates,” Moody’s analyst Helena Pavicic said in a note.