European insurers are expected to deliver solid profitability through the remainder of 2026 despite subdued growth, according to S&P Global Ratings, the credit ratings, market intelligence and financial research firm. The agency said investment income is gradually improving, although returns remain constrained as insurers continue replacing lower-yielding bonds purchased before 2022. “We believe the European insurers we rate are well placed to weather potential challenges such as inflation and volatility risk in financial markets. This is due to their focus on technical profitability, prudent asset allocation and material capital surplus,” added S&P Global Ratings Credit Analyst Voker Kudszus. In life insurance, S&P expects France, Italy and Spain to continue driving growth, while most other European markets are likely to remain broadly stable.