low interest rates News

Talanx Sells Remaining Shares in Swiss Life to Strengthen Balance Sheet

 Talanx AG, Germany’s third-biggest insurer, sold its stake in Swiss Life Holding AG to help mitigate the effect of low interest rates and to cover risk. Talanx will book 214 million euros ($267 million) profit from the sale of its 5.03 …

Towers Watson Predicts Moderate Global Growth, Downside Risks

Towers Watson says that overall global growth in the next three to five years will be moderate and divergent on a country basis, and risks to global growth are skewed to the downside in its report entitled “Secular Outlook 2014: …

German and French Insurance Markets Show Resilience

Despite varying internal pressures, the German and French insurance markets have shown resilience in their respective ways, according to two separate reports issued by A.M. Best. While Germany’s economy is among the strongest in Europe, its insurance market will continue …

Talanx to Shift Investments to Non-Euro Countries

Talanx AG, Germany’s third-biggest insurer, plans to shift investment to countries outside the euro region as monetary policy measures erode returns on assets in the currency union. “Generally speaking, investing has become more complex and more risky as a result …

Lloyd’s Chairman Nelson on Reinsurance Market, Coverholders, Future Expansion

Lloyd’s Chairman John Nelson is pleased with the current state of the Lloyd’s market. Shortly after Nelson was interviewed at the Reinsurance Rendezvous in Monte Carlo, Lloyd’s announced a $1.67 billion [$2.72 billion] profit for the first half of 2014. …

German Insurers Weigh Funding to Plug Merkel Infrastructure Gap

Germany’s insurers said they may back a government call to invest in infrastructure to help cover an annual €7 billion ($9.23 billion) taxpayer shortfall to repair roads and bridges. The GDV, the Berlin-based group that represents insurers including Allianz SE, …

Munich Re Second-Quarter Profit Rises 45% on Investment Gains

Munich Re, the world’s biggest reinsurer, said second-quarter profit rose 45 percent helped by higher investment income. Net income advanced to €765 million ($1.02 billion) from €528 million [$706 million] a year earlier, the company said in a statement today. …

Best’s Report Sees M&A Activity for P/C & Reinsurance Focused on Diversification

A report from A.M. Best concludes that “global merger and acquisition (M&A) activity in the property/casualty (P/C) and reinsurance industries continued at a steady pace in the first half of 2014.” Best said that, based on its research “35 P/C …

Insurers’ Yield on Investments Lowest Since 1965

Warren Buffett had just taken control of Berkshire Hathaway Inc., a textile maker he would build into one of the world’s largest insurers, the last time U.S. property/casualty carriers endured such low interest rates. That was almost five decades ago. …

S&P Panel Urges Insurers to Seek Better Returns Globally

“Continuing low interest rates and soft economic growth are contributing to a tough investment climate for insurance companies, but they’re still finding opportunities for a decent return if they’re willing to broaden their search,” according to industry executives at Standard …