low interest rates News

Zurich Aims to Cut Costs by $1B, Seeking to Reverse Earnings Decline

Zurich Insurance Group AG, Switzerland’s biggest insurer, will cut costs by more than planned as it seeks to reverse a drop in earnings. Chief Executive Officer Martin Senn said he will make additional annual savings of at least $1 billion by …

Vienna Insurance Posts Lowest Q1 Profit Since ’09, Hit by Low Interest Rates

The financial repercussions of record-low interest rates in Europe were highlighted Wednesday as Vienna Insurance Group AG, eastern Europe’s biggest insurer, posted its worst first-quarter profit since the financial crisis. The insurer, based in Austria’s capital, said the effect of low bond …

Finance Execs Question Effectiveness of Regulation to Prevent Future Crises

Chief executive officers and chairmen of some of Europe’s biggest banks and insurance companies called for more studies on the effectiveness and impact of regulation to prevent financial crises. While macroprudential tools help prevent bubbles and are necessary to address system-wide …

European Insurers’ Dividend Growth Unlikely With Rock-Bottom Interest Rates

Expectations of rising dividends and share buybacks from Europe’s insurance companies are fading as ultra low interest rates make it harder for them to meet new capital regulations. Rock-bottom interest rates reduce insurers’ investment returns, raising the risk of them …

Shareholders Seek Clues to Allianz’s Plan for Pimco from New CEO

Allianz shareholders will see new CEO Oliver Baete installed on Wednesday and will be eager for any clues about his strategy for Europe’s largest insurer – and how he plans to improve the prospects of its asset manager Pimco. California-based …

XL Looks to Illiquid Securities, Infrastructure to Boost Yields: McGavick

XL Group plc Chief Executive Officer Mike McGavick said the insurer is looking to illiquid securities and infrastructure investments to boost portfolio yields squeezed by interest rates that are near record lows. “We can get a little bit into the …

Insurers with $6 Trillion Mull Mortgage Loans, Private Equity: Goldman Sachs

Global insurers who oversee more than $6 trillion in assets plan to invest capital in commercial mortgage loans and private equity this year to generate higher returns, a Goldman Sachs Asset Management survey showed. Thirty-five percent of insurance executives said …

Low Interest Rates ‘Destroying’ Insurance Companies: BlackRock

Low interest rate policies by central banks around the world are threatening insurance companies and pension funds, said Laurence D. Fink, chief executive officer of BlackRock Inc., the world’s largest asset manager. “As we live in a world of persistent …

A.M. Best: European Reinsurers Report Strong Results, Growth Limited

Major European reinsurers have posted very strong full-year results for 2014 and continue to be well capitalized, with profitable underwriting results due to the absence of sizable natural catastrophes and ongoing reserve releases. Nevertheless, reinsurers face challenges as soft market …

Insurers Face Earnings Growth Challenges in Varying Global Economy: S&P

When it comes to finding earnings growth in 2015, the challenge facing the global insurance industry will be uneven economic conditions in many parts of the world, according to a report released by Standard & Poor’s Ratings Services. Entitled “Pursuing …