negative interest rates News

Low Interest Rates Pose Unknown Risks for European Insurers: CEO of Gjensidige

Cheap money could have unknown consequences for Europe, according to the chief executive officer of Gjensidige Forsikring ASA, Norway’s largest listed insurer. “It’s a sign of sickness for the economies in Europe when rates are this low,” Helge Leiro Baastad, …

Negative Interest Rates Described as ‘Dirt Sandwich’ for Insurers, Asset Managers

Central bankers globally need to realize the risks that extreme monetary policies will backfire, according to Voya Financial Inc.’s Karyn Cavanaugh. “Negative rates are turning out to be a dirt sandwich, especially for Japan,” Cavanaugh, who works as senior market …

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 …

European Insurers Look to Hoarding Cash After Brexit Vote

Investors will consider hoarding cash in vaults as government bond yields fall deeper into negative territory following the U.K.’s vote to leave the European Union, according to Talanx AG, Germany’s third-biggest insurer. “Storing physical cash as an alternative to paying …

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 …

Insurers Provide Cover for German Banks Stashing Billions of Euros

Europe’s top insurers are selling protection to German banks that hoard billions of euros of cash in vaults to avoid paying a penalty by parking it at the European Central Bank, company executives told Reuters. The sums are so big …

Swiss Re’s List of Emerging Risks Range from Blockchain Tech to Human Cyborgs

A fragmented Internet, continued experimentation with monetary policy and another round of economic crises in emerging markets top Swiss Re’s latest roundup of emerging risks to watch out for. Beyond those top three, the reinsurance giant covers everything from human-induced …

Global Financial Leaders Warn About Dangers of Negative Interest Rates

The chorus of global financial leaders warning about the fallout from negative interest rates is getting bigger. Nobuyuki Hirano, president of Mitsubishi UFJ Financial Group Inc., lambasted the Bank of Japan’s negative rates last week for putting banking stability at …