Analysis

  • The cost of equity in insurers’ SCRs

    23 September 2019

    What is the correlation between equity holdings in investment portfolios and the weight of market risk in insurers’ solvency capital requirements? Daisy Blake, Insurance Risk Data quantitative research analyst, looks for answers in European non-life insurers’ filings.

  • Spurring sustainable investments with capital charges

    19 September 2019

    The question of capital charges punishing ‘brown’ investments or incentivising ‘green’ investments has come to the fore. While regulators are asking for risk-based evidence, stakeholders are not all in agreement on how to proceed. Vincent Huck reports

  • Will BBB come back to bite?

    17 September 2019

    Is the end of the credit cycle really in sight and, if so, are European insurers at risk of seeing their high yield assets coming back to bite them? A wave of credit downgrades could significantly impact solvency ratios and put insurers in the position of forced sellers. But how worried should they be? Vincent Huck reports

  • The secret CIO: "We didn’t wait for Eiopa’s opinion on sustainability"

    12 September 2019

    Following on from Eiopa's consultation on sustainability within Solvency II, a CIO at a European insurer, speaking in their personal capacity, tells Vincent Huck why Eiopa’s move is too late, and why there are a lot of ‘shams’ around sustainability initiatives.

  • IAR Americas 2019: The role of private debt in sustainable infrastructure

    10 September 2019

    James Wilson, chief investment officer at Macquarie Infrastructure Debt Investment Solutions, gives an overview of the key points he will be presenting on at Insurance Asset Risk 2019 Americas conference held in New York City on 16 September.

  • European insurers fall short on FX scenario testing

    05 September 2019

    Less than one-quarter of Europe’s largest firms publish results of currency stress testing, according to research by Insurance Risk Data. David Walker reports

  • Reinsurers increasingly exposed to asset risk, but liability risk still the main focus

    03 September 2019

    Rating agencies Moody’s and S&P Global have published their 2020 reinsurance outlook noting slight changes in investment risk appetite. Though marginal at this stage, the change could become significant in five to 10 years’ time. David Walker and Vincent Huck report

  • Insurers get defensive in the face of Brexit fears

    29 August 2019

    In the three years since the UK voted to leave the European Union, the emotional pendulum has swung from hope to despair – regardless of where one stands on the issue – making fertile ground for comments. But what do the numbers say when looking at insurers' asset allocation in the years since the referendum? Vincent Huck reports.

  • EM debt - worth a look in the latter stages of the credit cycle?

    22 August 2019

    A market downturn is deemed to have more impact on emerging markets (EM) than on developed economies. It poses the question whether EM debt is a smart investment at this stage of the credit cycle. Ian Coulman, chief investment officer at Pool Re, speaks with Vincent Huck on the topic.

  • Investing in venture debt: pros and cons

    20 August 2019

    David Turner looks at why venture debt might be an attractive investment for insurers, bearing in mind the constraints around size of the deals and the regulatory treatment incurred.

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