low interest rates News

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 …

German Insurers Say Schaeuble Amendment Will Scare off Investors

German Finance Minister Wolfgang Schaeuble has deflected complaints from insurers worried that his revamp of how they meet obligations to policy holders will scare off investors, a ministry document released today shows. Schaeuble’s ministry is preparing a bill to secure …

Swiss Re Revives Ultra-Long Bond for Canada as Budget Looms

Swiss Re AG, the world’s second- largest reinsurer, wants to see a 50-year government bond in Canada as the company seeks investments that offset long-term liabilities while low interest rates depress returns. The reinsurer is urging the government to follow …

Part II – Reinsurance: Emerging Markets and Risks – the Road Ahead

As detailed in Part I, the reinsurance industry faces the task of partially reinventing itself to expand in those sectors where it can achieve growth. Property catastrophe coverage isn’t off the table, but it’s now an overcrowded field. Ever more …