One of the goals of the Capital Markets Union is to help mobilise capital in Europe and channel it to the infrastructure and long term sustainable projects that Europe needs to create jobs. By
amending the rules on how much capital insurance companies need to hold, the Commission is giving them incentives to invest for the long-term in infrastructure. These changes will free up millions of euros for new investment in projects like the energy pipelines, transport links and broadband rollout that are vital to maintaining and boosting Europe’s competitiveness.
The European Investment Bank estimates that the EU may need up to €2 trillion in investment in the period up to 2020. Public support through measures such as the €315 billion Investment Plan for Europe (IP/15/5420) will help, but there is a clear need for more private investment in such projects in the longer term.
Continue Reading “New EU Rules to Promote Investments in Infrastructure Projects” at New Europe News
A potential bright spot for reinsurers has been highlighted by global reinsurance company SCOR, which is expecting to see an increased and new demand for capacity from some of its larger, global clients, as the implementation of Solvency II approaches in early 2016.
SCOR sees its larger clients increasingly focused on services, rather than just capacity and price, after its meetings with important cedants in Monte Carlo this year, according to analysts at RBC Capital Markets.
With strong client relationships, SCOR also gets to discuss the future needs of large cedants and according to the analysts the French reinsurer is expecting to find opportunities to deploy additional capacity in the coming months.
Continue Reading “SCOR expects new reinsurance demand as Solvency II approaches” at Artemis News
Fashioning capital requirements for large insurers with a mix of traditional, nontraditional and noninsurance activities presents regulators with challenges, according to a governor of the Federal Reserve. In remarks prepared for delivery to the Banque de France conference in Paris on Monday, Federal Reserve Gov. Daniel K. Tarullo noted that traditional insurance liabilities “argue for lower capital requirements than might be required for a hypothetical bank holding a similar portfolio of assets.”
Life insurance has an “unusually predictable liability pattern,” and property/casualty insurance, while a bit more volatile, has a volatility that isn’t correlated with the broader economy, he said.
Continue Reading “Fed governor walks tightrope on insurer capital reserve rules” at Business Insurance News
Arndt Gossmann, CEO of DARAG, reflects on the main topics of conversation at this year’s Monte Carlo Rendez-vous.
This year’s discussions at the Rendez-vous in Monte Carlo were dominated – again – by three key topics: the rise in the M&A business including increasingly large M&A tickets; the final preparations for Solvency II and run-off, all a clear sign of the industry´s and investors´ interest in the industry; and also of its ongoing consolidation.
The weather in Monte Carlo just prior to the conference kick-off was befitting the discussion around the cat bond market – a sharp rain had swept the coast of Monte Carlo and the Mediterranean Sea just days before the conference started. As in the world of reinsurance business, where major risks had not materialised in the past year, fortunately there were no severe demolitions in Monte Carlo either.
Continue Reading “Old problems and new solutions” at Intelligent Insurer News
Phoenix Group Holdings (PHNX.L), Britain’s largest owner of life assurance funds closed to new customers, is in talks to buy Guardian Financial Services, it said on Thursday, although analysts say uncertainty over new capital requirements for European insurers could delay any agreement.
The move comes as life insurers in the UK are also having to adapt to an overhaul of taxation rules which effectively give retirees more control over their pension pots, no longer compelling them to buy annuities on retirement.
Shares in Phoenix, which makes money by buying up closed life books and running them more efficiently, rose as much as 4.8 percent to 902.5 pence after it confirmed a media report on Wednesday, before slipping back to trade at 867.5 pence by 1215 GMT.
The company said it was evaluating a bid for Guardian Financial, currently owned by private equity firm Cinven [CINV.UL], as one of a number of further “consolidation opportunities” in the UK closed life sector…
Continue Reading “UK’s Phoenix Group in talks to acquire Guardian Financial” at Reuters
The Swiss insurance industry will soon be able to operate across the EU, after being granted “full equivalence” under EU insurance rules.
The European Parliament has updated its procedure file, stating that it will not object to a European Commission’s decision to grant “full equivalence” to the Swiss insurance regulatory regime in Solvency II.
The Commission announced in June that Switzerland was given full equivalence, in all three areas of Solvency II: solvency calculation, group supervision and reinsurance, for an indefinite period.
Solvency II is a European Commission project for implementing a harmonised solvency regime across the EU. It sets out risk management requirements for European insurers and dictates how much capital firms must hold in relation to their liabilities.
Continue Reading “European Parliament accepts Commission decision on Swiss equivalence under Solvency II” at Out-Law News