low interest rates News

European Re/Insurers Well Positioned to Withstand Market Volatility: A.M. Best

European re/insurers are well positioned to withstand the current volatility in the stock markets, having made significant changes to their investment portfolios since the global financial crisis of 2008, as well as the subsequent European sovereign debt crisis in late …

Vienna Insurance Q2 Profit Drops 8.6% on Low Interest Rates in Region

Vienna Insurance Group AG, eastern Europe’s biggest insurer, said profit in the second quarter declined 8.6 percent as low interest rates in the region pushed down returns on its investments. Net income in the three months to June dropped to 93.7 million …

Investment Return Moves up Boardroom Agenda for Europe Insurers: A.M. Best

The pursuit of improved investment returns has become more important for European insurers after a lengthy period when their attention was more focused on non-investment sources of profit, according to a report published by A.M. Best. How an insurer might …

Update: AXIS Capital, PartnerRe Sweeten Deal with Higher Special Dividend

  Specialty insurer and reinsurer AXIS Capital Holdings Ltd and PartnerRe Ltd agreed to sweeten the terms of their merger agreement to fend off a rival bid from Italy’s EXOR SpA. The companies agreed on Thursday to raise the special dividend component to $17.50 …

UK Insurers Ponder Implications of Premium Tax Increase

The unexpected announcement in UK Chancellor George Osborn’s budget, which would raise the Insurance Premium Tax (IPT) from 6 percent to 9.5 percent starting in November, poses a problem for UK-based insurers. David Coupe, a partner in EC3\Legal, said: “The …

Reinsurance Industry Faces Uncertain Future as Time Moves On

It’s around two months until the annual Reinsurance Rendezvous in Monte Carlo, where the reinsurers, brokers, carriers, lawyers, accountants and cat modelers discuss the state of their industry. That industry, until recently a rock solid bastion of the “we do it …

Advanced Markets Drive 3.7% Global Premium Growth in 2014: Swiss Re

The global insurance industry gained momentum in 2014, with total direct premiums increasing by 3.7 percent to $4.778 trillion after having stagnated the previous year, according to Swiss Re’s latest “sigma” study. The life sector returned to positive growth, with …

Low Interest Rates Challenge European Insurers: A.M. Best Report

The low interest rate environment represents a significant challenge for insurers, according to a report published by A.M. Best. “European insurers are struggling to generate investment income as the majority of their invested assets are held in high-quality fixed-income securities,” …

Swiss Re to Expand Infrastructure Investments: Chief Investment Officer

Swiss Re AG Chief Investment Officer Guido Fuerer said the world’s second-biggest reinsurer would invest as much as 5 percent of its funds in infrastructure if securities used to fund projects were more easily tradeable. “The fact that we have invested …

Strong Capacity Drives Buyer’s Market in Political Risk Insurance: Marsh

Abundant capacity and strong competition have contributed to a favorable marketplace for buyers of political risk insurance globally, according to Marsh’s “Political Risk Market Update,” published this month. Despite growing concerns about global political and credit risks and a recent …