investment income News

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 …

Swiss Re Hikes Corporate Debt Holdings, Cuts Risky Government Bonds

The European Central Bank has turned government bonds into one of the riskiest asset classes, prompting Swiss Re AG to move more of its investments into corporate debt, according to the reinsurer’s chief investment officer. “If you’re looking for a …

PartnerRe Reshapes $16B Investment Portfolio Under Elkann/EXOR’s Leadership

PartnerRe exited junk bonds and shifted funds into property as the reinsurer reshaped a $16 billion investment portfolio after being acquired by John Elkann’s EXOR SpA. EXOR’s approach is to focus on holdings that “we know and understand very well,” …

Munich Re Issues First Quarter Profit Warning on Lower Equity Investments

Munich Re, the world’s second-biggest reinsurer, fell the most since August 2013 after saying first-quarter profit will be lower than it previously expected. Earnings for the quarter will also be lower than a year earlier after market turmoil caused the …

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 …

European Re/Insurers Well Positioned to Withstand Market Volatility: A.M. Best

European re/insurers are well positioned to withstand the current volatility in the stock markets, having made significant changes to their investment portfolios since the global financial crisis of 2008, as well as the subsequent European sovereign debt crisis in late …

Fitch: Downward Pricing Pressures in Reinsurance Market Begin to Slow

The reinsurance market showed signs of decelerating rate declines in its most recent June/July 2015 renewals, indicating that pricing could be approaching a new equilibrium, says Fitch Ratings in a new global sector report. Reinsurance pricing has experienced downward pressures …

Vienna Insurance Q2 Profit Drops 8.6% on Low Interest Rates in Region

Vienna Insurance Group AG, eastern Europe’s biggest insurer, said profit in the second quarter declined 8.6 percent as low interest rates in the region pushed down returns on its investments. Net income in the three months to June dropped to …

Einhorn’s Greenlight Re May Gain $30.4M From China’s Currency Devaluation

With U.S. equities declining in the wake of China’s currency devaluation, hedge fund manager David Einhorn may be one of the few stock pickers to get a direct boost from the yuan’s sudden decline. Greenlight Capital Re Ltd., an insurer …

Investment Return Moves up Boardroom Agenda for Europe Insurers: A.M. Best

The pursuit of improved investment returns has become more important for European insurers after a lengthy period when their attention was more focused on non-investment sources of profit, according to a report published by A.M. Best. How an insurer might …