interest rates News

Build vs. Buy an Agency: Organic Growth in Rising Interest Rate Environment

Now that interest rates are rising again, it’s time to re-examine whether buying an insurance agency is the smart choice for growth or whether building an agency makes more sense. While lots of factors come into play when agents want …

Activist Investor Icahn on High-Yield Bonds, AIG, Interest Rates

Billionaire activist investor Carl Icahn said he is betting against high-yield bonds, as he sees a bubble among companies that have overborrowed recently, and expects the dollar to keep rallying into next year. Icahn, speaking at the Reuters Global Investment …

Financial Markets Warned Aging Population Means End to Savings Glut

The global “savings glut” that has driven stocks to record highs and bond yields to record lows will soon start to disappear, leading to higher interest rates around the world as populations age, according to a Barclays study. After three …

A.M. Best: Geopolitical Tensions Hit Insurers’ Prospective Growth in Russia

Heightened geopolitical tensions spilling over from the Russia-Ukraine crisis, high interest and inflation rates, and low commodity prices are placing pressure on Russia’s economy and its insurance industry’s prospective growth, according to an A.M. Best special report. A.M. Best believes …

Best Special Report Focuses on Asia-Pacific Insurers Cat Loss Challenges

A special report from A.M. Best analyzes the “reduced frequency of large-scale catastrophes through November 2012, which, Best said, has “helped Asia-Pacific non-life insurers to slowly recover from losses inflicted by natural disasters in 2011. Best’s report points out that …

Risk Managers’ Top 3 Concerns: Interest Rates, Currency Markets, Regulations

Interest rates, volatile currency markets and changing regulations are the top three things keeping risk managers from their sleep. Those are the conclusions summarized in an article on the Lloyd’s web site that revues the findings of the “The Risk …

UK Seeks to Mend ‘Broken’ Libor Interest Rate Setting, Not Scrap It

Britain’s top financial watchdog delivered a 10-point plan to fix Libor, but stopped short of scrapping the benchmark interest rate in a much-awaited reform of a system plagued by scandal. “The system is broken and needs a complete overhaul,” said …

Swiss Re’s Chief Economist on the State of the Global Economy

“The European debt crisis is affecting the global economy, definitely,” said Kurt Karl, Swiss Re’s chief economist in an interview at the recent Reinsurance Rendezvous in Monte Carlo. He did indicate that it’s affecting the U.S. a bit less, as …

Low Interest Rates: an Ongoing Problem for the Re/insurance Industry

Swiss Re’s sigma report analyzing the effect on the insurance industry of the continuing low interest rates doesn’t paint a pretty picture. They have been at historic lows for several years. For instance the nominal yield on a 10-year U.S. …

Reinsurance Rendezvous Focuses on Euro Zone, Interest Rates, Capital

For once there’s no natural catastrophe hanging over the annual Reinsurance Rendezvous in Monte Carlo (the 56th edition). Tropical storm Leslie missed Bermuda and Hurricane Michael is safely out in the Atlantic. But that doesn’t mean there are few concerns …