Emerging market debt can be dogged by misperceptions. But EMD has shown relative resilience in a tough environment, and EMD portfolios can be customized to meet a range of distinct requirements for insurers.
It's been an awfully long time coming, but yields on long-dated JGBs are becoming genuinely attractive to many Japanese CIOs - maybe for the first time in their careers, David Walker reports
The CBIRC is reportedly being dissolved and its duties transferred. David Walker finds an industry praising the modernising, improving impetus behind its work on C-ROSS Phase II, to benefit risk management and China's society more generally
Financing the energy transition across Asia is often described as one uniform path whose trajectory differs from Europe's and North America's due to APAC's fossil fuel reliance. But there may be as many paths taken within APAC as there are nations involved, David Walker finds
An innovative approach and framework for identifying climate transition risks and managing climate change in fixed income portfolios
Insurance Asset Risk hears properties are being 'stranded' as much as fossil fuel firms
Norwegian insurer Gjensidige has been running an experimental portfolio attempting to reach carbon price neutrality. Their former CIO, now chairman of Gjensidige Pensjonsforsikring, and one of their investment analysts discuss the initial findings. Interview by Vincent Huck
Report authors Swiss Re's Bolli and Allianz IM's Riese discuss the key considerations of the protocol third edition. Interview by Vincent Huck
See the big picture with J.P. Morgan Asset Management's Long-Term Capital Market Assumptions (LTCMAs) which incorporates more than 200 asset and strategy classes.
Inflation has defined 2022 and will still play a major role in 2023, while various regulatory initiatives are also set to come into force next year.
It has been a tough year for investors. Equities in particular have been jolted from one low to the next. So what can the markets expect from 2023? AllianzGI's global CIO for equities, Virginie Maisonneuve, gives her thoughts. Interview by Sarfraz Thind
According to Martin Herbon, head of global financial institutions at Natixis Investment Managers
The last ten months have shaken the traditional core fixed income playbook. We think it's time to consider a more thoughtful approach to fixed income allocations in insurance portfolios
Chief investment officers and chief risk officers should be worried about a potential stagflation, according to panellists at Insurance Risk & Capital Americas 2022, Vincent Huck reports.
The outlook may not be rosy for the coming months, but insurers believe investment opportunities are still there for those who know where to look. Vincent Huck reports
Insurers discuss credit risk at Insurance Asset Risk Americas 2022 conference. Panel highlights compiled by Vincent Huck
How can insurance investors achieve effective inflation protection, while also benefiting from a high return on capital, a regular income and a low volatility return profile?
As insurers broaden their ESG universe outside of climate, biodiversity is starting to gain momentum in the spotlight.... But why has it taken so long for it to be recognised as a crisis? Abbie Wood asks
Net-zero is a worthy aspiration—but US insurers bemoan the lack of available data to pave the way to get there, during an Insurance Asset Risk webinar. Sarfraz Thind reports
ESG data has become known as 'sustainable investing's main challenge', yet, while some insurance investors bemoan the lack of data, lack of quality of the available data, others say 'lets get on with it'. Abbie Wood reports
Moving from fossil fuels to renewable energy is a transition filled with tumult as investors are mired in questions of renewable capabilities and 'just transitions', the audience at Insurance Asset Risk Real Asset 2022 conference hears. Abbie Wood reports
The task Generali set itself to help 'rebuild Europe' after COVID-19, focused mainly on infrastructure, has arguably taken on extra importance - and opportunity - David Walker discovers
Four Insurance CIOs describe at the Insurance Asset Risk 2022 real asset conference how they moved into real assets primarily for yield, but now see the asset class as a great hedge against inflation, too. Vincent Huck reports
Clarence Wong highlights the strong economic outlook for APAC at Insurance Asset Risk Investing in Real Assets conference 2022, and why the region's real assets are a source of opportunities for insurers globally. Vincent Huck reports.
Russia's invasion of Ukraine has created a tragic humanitarian crisis while roiling financial markets, clouding global growth prospects and intensifying inflationary pressures.
David Walker draws on diverse data sources, to chart eight exhibits that give glimpse into the insurance industry of the world's most populous country and second largest economy
APAC's insurers tell David Walker they want more green and sustainable bonds - including more of the high-quality paper from their own neck of the woods
Clarence Wong highlights the strong economic outlook for APAC at Insurance Asset Risk Investing in Real Assets conference 2022, and why the region's real assets are a source of opportunities for insurers globally. Vincent Huck reports.
APAC's insurers tell David Walker they want more green and sustainable bonds - including more of the high-quality paper from their own neck of the woods
APAC green and thematic bond markets are still developing, but investors want more supply and the highest governance and reporting standards to meet their demand, David Walker discovers
Panellists at IAR's Asia conference discuss sacrificing balance sheets, for better ESG credentials, as Abbie Wood reports
Our 2022 Global Alternatives Outlook explores the most promising investment ideas, trends influencing markets and the under-appreciated risks investors may face across every key alternative asset class.
Ardea Investment Management examines key fixed income market themes for 2022.
In today's investment landscape, insurers are increasingly looking outside of traditional allocations to improve portfolio returns and returns on capital.
Facing the brave new post-Covid world, our experts highlight the opportunities that can help to future-proof your investment portfolios.
Since the health crisis of COVID-19 snowballed into an economic crisis, credit markets have seen their base shaken, but insurers retain some confidence, not without caution though. Vincent Huck reports
Panellists at Insurance Asset Risk 2021 Americas discuss inflation risk, and their hope for a rise in rates. Vincent Huck reports
Insurers share their lessons from the pandemic and its impact on markets at Insurance Asset Risk Americas 2021 conference. Compiled by Abbie Wood.
Insurers discuss the growing importance of private markets in their portfolio at Insurance Asset Risk Americas 2021 conference. Compiled by Abbie Wood.
Institutional investors are increasingly financing infrastructure projects in developing countries.
Sovereign bonds are a key asset class for insurers. Aegon Asset Management takes an innovative approach to incorporating sustainability characteristics into sovereign bonds investing.
Climate change is accelerating, and society is underprepared for the rising human, environmental, and economic toll. Investing in climate adaptation can help address the problem.
SFCRs reveal much about European insurers' financial health and, since 2020, also a lot about their preparations to tackle climate change risk, as David Walker finds
As insurers pledge allegiance to the net-zero kingdom, for all their willingness and honesty, the 'how' of reaching carbon neutrality remains a mystery, Vincent Huck writes.
We believe the higher yielding debt segment of the market currently can offer a highly attractive risk/return profile many insurers after adjusting for Solvency II capital charges.
Leaders of the 'G7' economies announced the 'Build Back Better World' global infrastructure programme, a 'step-change' in their approach to 'mobilise private-sector capital' for the asset class as never before. Europe's insurers stand ready to help, David Walker reports.
In an increasingly complex environment where returns can be scarce one could have expected CIOs to give answers based on fundamentals, but instead, their investment decisions seem to be driven by a greater cause - purpose, as Vincent Huck finds out
Discuss the trends, forecasts and risk/return characteristics for investments in infrastructure, real estate and renewable energy in the post-Covid economy. The event is free to attend for re/insurers, supervisors and regulators.
The risk and return opportunity set currently offered by emerging market (EM) debt allocations, particularly EM corporates, continues to draw insurers' attention. Read on to learn why.
Insurers can't get enough of infrastructure, for both duration and yield. But make it tradeable, standardise its terms and improve creditor rights, and the purse strings would really come loose, as David Walker finds out.
Opinion is split on whether 'general account ESG investing' in the Asia Pacific region will retain national flavours, or whether local nuances will be supplanted over time by a homogenised global investment method. David Walker reports
Climate-aware investing presents insurers opportunities both to mitigate material risks, and to build greater resilience, into their credit portfolios.
Lars Haram, chief investment officer at Oslo Pensjonsforsikring, discusses climate change, how the insurer sold its direct holdings in oil and gas and why focusing solely on renewables is not the right approach. Interview by Vincent Huck
Insurance Asset Risk's outlook survey discovered that sustainability is the overarching theme that will influence insurance investor behavior—not just this year but for the next decade and probably beyond. Yet, some are more prepared than others. Sarfraz Thind reports
While activism used to go against businesses, there is a lot more collaboration these days, and understanding between protagonists, as David Walker finds out
With fixed income sector yields at historically low levels, insurers are feeling pressure to achieve their income objectives. In our view, pockets of the securitized market have been overlooked and may help fill this need by providing compelling yield potential and relative value.
The search for sustainable income sources are growing increasingly difficult, we believe exposure to real estate, infrastructure and private debt is worth considering - here's why.
With central office rents down, and the very future of work spaces in jeopardy, Vincent Huck looks at what is in the balance for European insurers' €87bn of investments in the asset class
Investors see German real estate as safe heaven thanks to country's preparedness in handling COVID-19
Alongside Greystar Real Estate and CBRE Global Investors
With lower ratings than their developed market counterparts and potential economic dependencies to oil, emerging markets are on the frontline of the COVID-19 crisis. It is raising questions for insurers' allocation to the asset class. Vincent Huck reports
New regulatory guidelines in China for insurers' asset management products could electrify the once contentious $400bn market. David Walker reports
The pandemic and its effect on the economy and markets will not affect allocation trends towards emerging markets and in particular increased interest in Chinese opportunities. Invesco head of EMEA for fixed income Nick Tolchard discusses the reasons why China remains a land of opportunities. Interview by Stephanie Harris
Ben Deng, chief investment officer of China Pacific Insurance Group, the third largest life and P&C insurer in China, tells David Walker how the Chinese market is coping with COVID-19 disruptions, and how China will come out of it stronger.
A tactical approach across the credit spectrum should offer attractive opportunities for insurers. Learn why we think focusing on higher-quality credits and shifting to pockets of dislocation makes sense now.
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The COVID-19 crisis has resulted in unprecedented monetary and fiscal stimulus. The article considers how this may increase inflationary pressures, and approaches that insurers can use to mitigate this.
The rating agency has run stress tests on European insurers' corporate bond portfolios and reveals that, in the most extreme scenario, solvency ratios could decrease by up to 50 percentage points. Vincent Huck reports
Panellists: Swiss Re' Haegeli, DWS's Fehlmann, Just Group's Bailey
And calls on underwriters to help investment teams in their engagement efforts
Insurer asks outsourced managers to price carbon into investment choices
Taxonomy is making it harder to falsely market green investment products
Work by asset managers sets 120-day ban following 34% increase in Amazonian deforestation this year
Green bond is second by Italian insurer
US insurer's bonds to fund environmental projects, says Bloomberg
Actions speak louder than words, director of investment stewardship Sacha Sadan says
Insurance Asset Risk's webinar on insurers getting to grips with ESG investments available on replay
Accessing energy transition opportunities in private markets
The coming decade of transition could reshape how debt finances the low-carbon world
Half of the world's largest asset managers are neglecting the ecological and social harms of their investments, according to a research by ShareAction. However, insurers' affiliates seem to be ahead of the curve. Vincent Huck reports
While Moody's and S&P's 2020 outlooks for the European insurance industry differ, both predict challenging times ahead for European underwriters. Vincent Huck reports
Ever a patchwork of underwriting industries, the insurers of Asia will go their own ways when investing in 2020, as demands of performance, new regulation and even mild governmental cajoling come to play in varying degrees in the different jurisdictions. By David Walker
Many had bet on the market staging a final whimper last year before recession. But the talk of a global downturn suddenly vanished in the last few months of 2019. Now investors are looking at the market with rosy spectacles and hoping for more rewards in 2020. Sarfraz Thind reports
Will lead business expansion in Japan and Asia generally
System can run insurers' asset-only optimisations and/or optimise assets and liabilities
Watch the replay of this webinar hosted by Insurance Asset Risk in partnership with Moody's Analytics
With low interest rates impacting solvency ratios, insurers are looking for the holy grail of high yielding assets which do not require higher capital charges. Vincent Huck reports
Insurance companies have traditionally focused most on balance sheet liabilities, with investment assets often overlooked opportunities – strategies now exist that allow insurers to create capital-efficient investment portfolios to enhance yield, improve returns, and optimise capital.
In the face of growing uncertainties around the date and terms of Brexit, underwriters with UK operations are leaning ever more heavily on their chosen asset managers for help, advice and expertise. David Walker reports
While outsourced CIOs have been predominantly used in the pension space up until now, small US insurers are increasingly seeing the benefits of such a move. But insurers' needs differ widely from those of pension funds, and service providers will need to prove their worth to win mandates. Sarfraz Thind reports
Many insurers’ affiliated managers have been sent out by their parents to gather third-party assets in recent years – with varying success. The managers might put their affiliation to an underwriting group forward as a credential to win more insurance mandates, but a European CIO questions whether this can be a universal truth. David Walker reports
As many non-life insurers come to rely on their investment performance for an ever greater slice of their total profits, or to make up for underwriting losses, investment teams are looking at new asset classes with the help of external managers. Far greater transparency about the insurers' business practices is offering a unique glimpse into what they want and to whom they outsource this key task. David Walker reports
With fixed income sector yields at historically low levels, insurers are feeling pressure to achieve their income objectives. In our view, pockets of the securitized market have been overlooked and may help fill this need by providing compelling yield potential and relative value.
Holding asset-backed securities has been a challenge for most insurers since the dislocations of the global financial crisis and introduction of Solvency II. This year, new regulation offers the potential for Solvency II-regulated firms to return to securitised debt investments, says James King, fund manager at M&G.
Physical assets, particularly infrastructure and real estate, have a critical role to play in facilitating the transition towards a more sustainable economy and a greener world. Incorporating ESG considerations is a fundamental part of an asset manager's duty to their clients.
The UK has for many years been heralded as a treasure trove of investable infrastructure assets. However, as the industry faces potential disruption from renationalisation, regulatory reforms and Brexit, we discuss the risks and rewards of investing in UK infrastructure.
Strong returns, stable performance, low risk—the market for commercial mortgage loans has run on tailwinds in the last 10 years with more insurers bringing the asset onto their portfolio than ever before. But, with a looming economic downturn, is the love affair with CMLs about to run out? Sarfraz Thind reports
As China celebrates the sixth year of its initiative this week, insurers remain reluctant to invest in its projects. Vincent Huck asks why
Climate Action 100+ releases first progress report as pressure on climate-aware investing grows
But warns industry to take account of climate risk in investments and valuation
UK, Dutch and Swedish insurers urge governments to start implementing plans to be carbon neutral by 2050
GSAM's research finds 57% of insurers globally consider ESG investing as one of several investment considerations
Consultancy identifies five catalysts to accelerate progress
Insurers and asset managers join other financial services firms in the chapter’s launch
The UK insurer’s investment arm has increased its number of votes against management as well as shareholder resolutions
Insurers’ management of climate risk will be assessed in their governance, risk management, scenario analysis and disclosure
Eiopa tells French insurers at Paris conference
Japanese insurer to engage on climate change and disclose reasons for voting against resolutions
Three major Japanese insurers – Tokio Marine Group, MS&AD Insurance Group, and Nippon Life Insurance – are beginning to integrate climate risks and environmental, social and governance (ESG) factors into their strategies, each with its own focus area. Elena K. Johansson reports.
As Japan becomes the third largest market for sustainable investing
Lisa Longino, head of insurance asset management at MetLife Investment Management, argues that while it is prudent to keep a close eye on the horizon, uncertainty and volatility create opportunities for investors willing to take smart risks.
Hilde Jenssen, product manager for fundamental equities at Nordea Asset Management provides a 2019 outlook for equities in the Asian region as well as latest trends in environmental, social and governance factors (ESG). The outlook is based on views from Nordea Asset Management emerging markets portfolio management team.
Prashant Sharma, head of international fixed income insurance at JP Morgan Asset Management, predicts a slowdown in growth for 2019, but all is not lost for insurers’ assets and a bit of forward thinking and preparation could help the resilience of their investments in the case of a downturn.
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.
Emerging markets should be an attractive option for US insurers as the Federal Reserve looks to cut rates, making opportunities at home less attractive. But, as the Trump government continues building trade barriers, are US government policies stymying enthusiasm for the asset class? Sarfraz Thind reports
Despite strong buffers over and above their minimum capital requirements, two of the four largest Singaporean insurers by assets breach minimum capital requirements in the International Monetary Fund's stress test. Vincent Huck reports
Sanjeev Gupta, executive director at Africa Finance Corporation and former CEO of Sanlam Investment Management Emerging Markets operations speaks to Insurance Asset Risk about mitigating risks in African infrastructure investments and why insurers are under-investing in the asset class. Interview by Vincent Huck
Emerging market corporate debt has been a rapidly growing universe over the last 10 years. What might be of surprise is that over 55% of the EM corporate universe is investment grade.
“Emerging market debt (EMD) is still not seen as a core asset class for many European insurers, due to concerns over its risk/return profile, credit spectrum and market capacity. We believe these concerns are misplaced.”
The intensification of climate risks and the degree to which they are accurately priced by financial markets are of increasing concern to global economic stability. However, as awareness around those risks has risen over the last years, there is still a long way to go to consistently measure and monitor their costs, which can result in substantial gains or losses for institutional investors. Vincent Huck reports
In recent investor presentations and earnings calls, we have increasingly come across the terms ‘artificial intelligence’ (AI) and its terminology bedfellows, ‘machine learning’ (ML) and ‘Big Data’. While companies have addressed these concepts for a few years now, they have taken centre stage in the last 12 months.
MetLife's chief digital officer Greg Baxter talks to Paul Walsh about which technologies are his top priorities, how such technologies can be applied to asset liability management in a Solvency II environment and what investments the firm is making in the digital economy.
In a two-part series Allianz's CIO, Carsten Quitter, speaks to Insurance Asset Risk some three years after his predecessor Andres Gruber told of his challenges. In part two, Quitter talks about the latest themes affecting his role as CIO: technology, ESG and the relationship with Allianz's asset managers. By Sarfraz Thind
Insurers have increasingly invested in private assets in recent years to counter the low yield environment. But as we enter the later stages of the credit cycle, questions are being raised on whether private assets were tactical short-term choices, or if insurers have fully embraced these asset classes. Vincent Huck reports
A US infrastructure overhaul is due—that much is common knowledge. However, so far, institutional investors and especially insurers have been coy to invest due to policy hurdles at the federal level. As each state administration starts to address these issues, insurers are seeing opportunities building up. David Turner reports
With insurers showing greater appetite for private credit, authorities are keen to ensure firms are applying robust credit risk assessments – but the lack of rating agencies in the space is giving regulators and insurers a headache. Asa Gibson reports.
Institutional investors are increasingly financing infrastructure projects in developing countries.
Climate change is accelerating, and society is underprepared for the rising human, environmental, and economic toll. Investing in climate adaptation can help address the problem.
Sovereign bonds are a key asset class for insurers. Aegon Asset Management takes an innovative approach to incorporating sustainability characteristics into sovereign bonds investing.
As insurers pledge allegiance to the net-zero kingdom, for all their willingness and honesty, the 'how' of reaching carbon neutrality remains a mystery, Vincent Huck writes.
SFCRs reveal much about European insurers' financial health and, since 2020, also a lot about their preparations to tackle climate change risk, as David Walker finds
Michael Lewis, head of ESG Thematic Research at DWS, discusses physical climate risk and how the financial system's approach to this concept will evolve.
Johanna Köb, head of responsible investment at Zurich, talks to Cintia Cheong on the importance of adequate pricing of greenhouse gases and how investors can make a profit while doing good to the society and environment.
From the diesel emissions scandal to the perceived exploitation of zero-hour contracts, there have been many examples in recent years of how failures in the way companies are run can have a harmful impact on the environment, society and investor returns.
Asset prices do not seem to be adequately reflecting the long-term systemic risk from global climate change. Wellington Management's Alan Hsu explains why insurers are likely to lead the repricing of climate risk – and how multi-decade public-equity approaches might help.
A growing body of evidence suggests that ESG investing fosters better investment decisions, performance and risk management. While insurers lag other institutional investors in embracing ESG investing, momentum is building and things look set to change.
Insurers are looking more closely than ever at the current trend of green bond investment. But is this just a fashion? And what should investors be aware of when putting money into this still nascent sector? David Turner reports
The ageing population in Europe, often viewed as a great risk for the life sector, may also provide attractive investment opportunities through retirement and care home properties. Axa's real estate business is already active in the space. Asa Gibson reports
Within the booming UK real estate industry, where a lack of supply has inflated valuations and rental prices, the build-to-rent sub-sector offers an alternative revenue stream for insurers. Cintia Cheong reports
Real estate debt can offer a set of outcomes well suited to the needs of insurers, including a solid relative value proposition, stable cashflows, strong investor protections and transparent security against physical underlying assets. John Barakat, head of real estate finance, M&G Investments explains
The projected growth of e-commerce and urbanisation has seen real estate investors showing increasing interest in urban logistic centres. Paul Walsh explores the nascent asset class as an opportunity for insurers.