European Central Bank News

Europe Urged to Focus on Those Who Must Pay Off Debt After Pandemic

Rebuilding Europe after the coronavirus pandemic will be akin to the post-World War II reconstruction effort and the bloc must reaffirm its core values despite challenges from global powers, former European Central Bank President Mario Draghi said. The pandemic risked …

U.K.-EU Brexit ‘Working Group’ Tasked with Fate of Insurance Policies

The European Central Bank and the Bank of England have been drafted in to study the threats that Brexit poses to financial services. Just don’t expect this “technical working group” to save the day. Brexit’s potential to disrupt trillions of …

Europe’s Insurers, Pensions Seek Higher Yields via Infrastructure Investments

Europe’s pensions and insurers, seeking returns in infrastructure deals after asset purchases by the European Central Bank gutted yields on bonds, say they’re being crowded out again. Their frustration is directed at the European Investment Bank, a public lender tasked …

Europe Insurers’ Stress Tests Could Lead to Higher Capital Requirements

European insurers, whose profits are being eroded by Mario Draghi’s* quantitative easing program, face a stress test headache that risks requiring them to set aside more capital, further hurting their ability to make money. The timing of the regulator’s “stress …

Update: Munich Re Counters Negative Interest Rates by Boosting Cash Reserves

German reinsurer Munich Re is boosting its cash reserves in the face of the punishing negative interest rates from the European Central Bank, it said on Wednesday. The world’s largest reinsurer is far from alone in seeking alternative investment strategies …

ECB Decision to Extend Quantitative Easing Hits European Insurers’ Shares

Shares of European insurers fell after the European Central Bank decided to extend its quantitative easing program until at least March 2017 and broaden the range of assets purchased. The decision is “disappointing” because bond purchases by the ECB will …

German Advisers Warn Europe’s Low Interest Rate Policies Risk Financial Stability

The German government’s panel of economic advisers said on Wednesday the European Central Bank’s low interest rates were creating substantial risks, and Finance Minister Wolfgang Schaeuble warned of a “moral hazard” from loose monetary policy. The double-barreled message came after …

A.M. Best: European Insurers Tap Capital Markets Ahead of Solvency II

Low interest rates together with highly liquid and stable financial markets have prompted European insurers to tap the capital markets in their efforts to lower the cost of capital and optimize levels of risk-adjusted capitalization, according to a new report …

European Central Bank Warns of Risks to Insurers of Low Interest Rates

The European Central Bank said on Thursday that record low interest rates were putting insurance firms and banks under increasing pressure and warned that any sell-off in stocks and bonds could damage the euro zone’s recovery. In its twice-yearly Financial …

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 …