Dutch insurer Aegon NV (AEGN.AS) reported worse-than-expected first-quarter underlying pretax profit of 462 million euros ($527 million) on Thursday, mostly due to weakness at its large U.S. operations.
Analysts polled by Thomson Reuters had expected a profit of 471 million euros, up from 432 million a year earlier.
Net income fell to 143 million euros from 289 million on lower investment gains and lower asset valuations.
Continue Reading “Aegon misses first-quarter underlying pretax expectations on weak U.S” at Reuters News
Between 1 April 2013 and 15 February 2016, the PRA published a series of Solvency II Directors’ letters, Executive Directors’ letters, and Feedback Statements, so that everyone knew what its expectations were, as it developed its Solvency II thinking and policy over time.
This was meant to help firms prepare for Solvency II compliance, but it created a library of documents that are often hard to find. So, the PRA is proposing to republish them as new Supervisory Statements, or amendments to existing Supervisory Statements.
In “Solvency II: Consolidation of Directors’ letters” (CP 20/16), the PRA proposes to consolidate its previous letters and Feedback Statements into Supervisory Statements on:
Continue Reading “Blog: PRA To Consolidate Its Collection Of Solvency II Directors’ Letters” at JD Supra Business Advisor
Hastings (HSTG) got its IPO away at a difficult time for the stockmarket. But, seven months on, the insurance company has staged an impressive recovery since finance stocks got hammered in February. In fact, last week’s first-quarter results were so good it now offers the highest earnings growth in the sector, but on the cheapest multiple.
Based in Bexhill-on-Sea, about five miles west along the south coast from Hastings town, the insurer has just increased its share of the car insurance market to 6%. Gross written premiums rose by 29% in the three months ended 31 March to £171 million. Net revenue jumped 22% to nearly £133 million.
“Based on the continuing positive momentum in the business, we remain confident of delivering against our expectations and targets for all of our stakeholders,” said chief executive Gary Hoffm.
Continue Reading ” Why car insurer Hastings is dirt cheap” at Interactive Investor
A new executive order on financial reporting entered into force on 1 January 2016, implementing the Solvency II rules. Also, at the end of March 2016, the Danish FSA submitted a new executive order on financial reports containing various corrections and clarifications for consultation.
Alm. Brand has implemented the new executive order on financial reporting and the changes based on the draft executive order submitted for consultation in March.
As a result, the figures reported for 2015 have been restated to reflect the new executive order on financial reporting. Comparative figures have been restated only for the Non-life Insurance segment. For Life and Pension, the changes are recognised as from 1 January 2016, while the Banking segment is not affected by the new executive order.
Continue Reading “Alm. Brand – 2015 financial figures restated to reflect Solvency II” at Nasdaq GlobalNewswire
Pension funds, it appears, are coming to France. Of sorts, at least.
The main providers of French supplementary pensions – insurers, mutual and institutions de prévoyance (a form of assurer) – have received a reprieve.
A law proposed by Michel Sapin, the finance minister, foresees the creation of a new legal entity and regulatory regime intended to allow these providers to bypass Solvency II, the EU legal framework to which insurers are subject.
The problem, according to the government, is that the new rules for the insurance sector – effective since January 2016 – prevent France’s retirement insurers from being able to effectively carry out their activity as long-term investors.
Continue Reading “Pensions In France: Change of tack on pensions” at Investment & Pension Europe
Gibraltar is subject to the same rules as everywhere else in Europe. Kathryn Morgan explains why insurers really flock to the British Overseas Territory
I was intrigued by Tony Cornell’s article on the implications of Brexit, in particular his statement that: “Many motor insurers use Gibraltar as a means of passporting into the UK. If we leave, its special status within the EU will go. This enables them currently to have lower capital ratios, tax and lighter regulation [my emphasis] giving them a competitive advantage.”
The Gibraltar Financial Services Commission is a recognised National Competent Authority and, as such, we have consistently ensured that we comply with all EU directives and in particular that all of our insurance firms are regulated by professional and accessible supervisors to the standard required by EU Directives.
Continue Reading “Why insurers set up in Gibraltar” at Insurance Age
According to the Solvency II legislative framework the ultimate forward rate shall be stable over time and shall only change as a result of changes in long-term expectations. The methodology to derive the ultimate forward rate shall be clearly specified and be determined in a transparent, prudent, reliable and objective manner that is consistent over time.
Furthermore, the ultimate forward rate shall take account of expectations of the long-term real interest rate and of expected inflation.
The main objective of Solvency II is the protection of policyholders. To achieve that objective, the UFR needs to be chosen appropriately.
The proposed UFR methodology strives for a balance between the stability of the UFR and the need to adjust the UFR in case of change in long-term expectations about interest rates and inflation.
Continue Reading “The European Insurance and Occupational Pensions Authority (EIOPA) published… ” at Actuarial Post News
Solvency II is making a splash in Europe, with EU-based insurers riding the latest wave of regulation. Only time will tell how its arrival in the EU will impact life insurance companies.
On 1 January 2016, Solvency II finally landed and became the key regulatory framework for EU-based insurers and their subsidiaries. This article considers how international or ‘offshore’ life insurance companies are affected by Solvency II, now and in the future.
Advances with insurance and reinsurance regulatory frameworks in China and India are reforming both countries’ reinsurance markets, a move that could provide global reinsurers and insurance-linked securities (ILS) players with ample opportunity to access new peril regions.
During 2015 both China and India made significant steps towards improving their domestic insurance and reinsurance industries, seeking to expand the number of reinsurance entities that write business on their shores and improve the security and solvency of their re/insurance markets and players.
“A number of regulatory actions in Asia are changing the market landscape. Key regions like China and India are seeing reform implemented that will likely bring new market players and potentially create reinsurance supported opportunities for insurers in the market,” says reinsurance broker Aon Benfield in its latest reinsurance market outlook report.
Continue Reading “Regulatory Advances Create Reinsurance And ILS Opportunities In Asia” at Seeking Alpha News
The European Insurance and Occupational Pensions Authority (EIOPA) has published a consultation paper on the European Commission’s “… request to EIOPA for further technical advice on the identification and calibration of other infrastructure investment risk categories i.e. infrastructure corporates“.
This process began in February 2015, when the Commission made its first call for an EIOPA technical advice on infrastructure investments by insurers. On that occasion:
- EIOPA published a consultation version of its draft advice to the Commission in July 2015;
- EIOPA submitted its final advice to the Commission on 29 September 2015 – in particular, EIOPA proposed lower Solvency II capital charges for debt and equity investments in “qualifying infrastructure projects” that were financed using an appropriate SPV structure; and
Continue Reading “Blog: Solvency II: EIOPA Consults On Treatment Of Infrastructure Corporates” at JD Supra Business Advisor