low interest rates News

Analysts Say Low Interest Rates to Drag on Insurer Profits, Dividends Long-Term

Rock-bottom interest rates could erode insurers’ earnings power and financial strength for years to come, putting an end to a string of stronger-than-expected rises in dividends, analysts said in reports published on Thursday. Credit rating agency Moody’s said it expected …

Regulators Concerned About Risks in $75 Trillion Shadow Banking Sector

Authorities are nowhere near to fully understanding “shadow banking” as the $75 trillion sector morphs and grows under the influence of new technology and regulation, a top markets supervisor said on Wednesday. Shadow banking refers to the supply of credit …

Europe’s Insurers to Boost Dividends for Investors Seeking Higher Yields

Europe’s insurers are preparing to boost dividends to the highest of any industry except utilities, making use of expanding surplus capital to offer investors an alternative to record low interest earnings from bonds. Companies including Allianz SE, Europe’s biggest insurer, …

A.M. Best: European (Re)Insurers Face Pressure Points; Ratings Are Stable

The recent unveiling by the European Central Bank (ECB) of its large-scale sovereign bond buying program is just one of the pressure points building in Europe that could affect insurers and reinsurers’ balance sheets, said A.M. Best in a new briefing, …

Spain’s Mapfre Seeking to Make Acquisitions in Europe and U.S.

Mapfre SA, the biggest insurer in Spain, is seeking to expand and may make acquisitions in Europe and the U.S., Chairman Antonio Huertas said. The company isn’t constrained by regulators’ efforts to stiffen capital requirements for the insurance industry, Huertas, 50, …

Lengthy Period of Low Interest Rates May Hurt Some European Insurers

One in four European insurers may struggle to meet promises to policyholders in a prolonged period of low interest rates, the European Union’s insurance watchdog said following a stress test of the industry. These insurers will need to raise capital and watch …

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 …