EU strategic fund urged to ‘step up’ talks with institutional investors

The strategic investment fund at the heart of the EU’s Investment Plan for Europe must “step up” its engagement with institutional investors to facilitate more sustainable infrastructure investment, a images€13trn-plus coalition of pension funds and asset managers has said.

The Institutional Investors Group on Climate Change (IIGCC) addressed its call specifically to the investment committee of the European Fund for Strategic Investment (EFSI), the EU’s vehicle for implementing what was initially known as the Juncker Plan.

The IIGCC has previously made a series of recommendations to boost investment in renewable energy and other sustainable infrastructure in Europe through the EFSI.

Continue Reading “EU strategic fund urged to ‘step up’ talks with institutional investors” at Investment & Pensions Europe

UK parliament launches inquiry into EU’s Solvency II rules after Brexit

A powerful committee of UK parliamentarians has launched an inquiry into EU rules for the €8.4trn insurance industry, following the UK’s vote to leave the 28-member bloc.

sadsaptureThe Treasury Select Committee said on Tuesday it wanted to examine the so-called Solvency II regime, which came into force at the beginning of the year, to see whether the Brexit vote meant that there were “options” for UK insurers, reports Caroline Binham,

“Brexit provides an opportunity for the UK to assume greater control of insurance regulation,” said Andrew Tyrie, the Conservative chairman of the committee, adding:

Continue Reading “UK parliament launches inquiry into EU’s Solvency II rules after Brexit” at the Financial Times

IVASS approves look-through approach to determine solvency capital requirements

IVASS, the Italian insurance regulator, recently approved IVASS Regulation 28 of July 26 2016 on aon-benfield-swiss-re-weather-reinsurancethe look-through approach to determine the solvency capital requirements of insurers in the context of:

Under the standard formula, the solvency capital requirement will be determined by applying the look-through approach to collective investment schemes consisting of undertakings for collective…

Continue Reading “IVASS approves look-through approach to determine solvency capital requirements” at International Law Office News

Malta: a gateway to Europe

In a post-Solvency II world and against the backdrop of the UK’s leaving the EU, Malta can offer companies a robust regulatory regime, access to Europe and innovative structures such as protected cell special-malta-wallpapercompanies and ILS, Penny Hudson at Artex Risk Solutions tells Monte Carlo Today.

The attraction and benefits of Malta as a domicile are already established, although the jurisdiction is seeing potential enhancement due to the UK’s planned exit from the European Union as it will reap the rewards of its own EU membership and sustained investment in its regulatory regime, infrastructure and education system needed to support its fast-growing financial services sector.

That is the view of Penny Hudson, director and head of the Malta office at Artex Risk Solutions, the specialist in insurance management and alternative risk programmes.

Continue Reading “Malta: a gateway to Europe” at Intelligent Insurer News

 

Reaching a new peak

The run-off market is hitting new highs and breaking all records in 2016 as large insurers execute their post-Solvency II strategies, Arndt Gossmann, chief executive officer of DARAG, tells Monte Carlo Today.

peak-climbing-in-nepalThe run-off market in Europe is undergoing a seismic shift in 2016 with both the number of deals and their size increasing exponentially, according to Arndt Gossmann, chief executive officer of specialty run-off insurer DARAG.

In total, Gossmann predicts atransaction volume of more than €4 billion ($4.4 billion) in 2016 and the first in a series of run-off deals worth more than €1 billion ($1.1 billion) as the market reaches a new peak.

He attributes this to many of the bigger insurers finally executing pre-determined strategies on how to handle closed books of business and…

Continue Reading “Reaching a new peak” at Intelligent Insurer News

Ljubljana, “SII Lessons Learned” conference: Solvency II helps ensure policyholders protection and ultimately increase the trust in the system

No doubt, customers are more and more decisively holding the central spot in the insurance business, their needs and characteristic being more clearly outlined thanks to the lessonsdigital technologies’ contribution.

On the supervision side, customers’ rights protection is also becoming the current paradigm. “The ultimate goal of Solvency II is consumer protection,” Sergej SIMONITI, Director of Insurance Supervision Agency of Slovenia, stated in this respect on the occasion of the insurance conference recently held in Ljubljana.

Continue Reading “Ljubljana, “SII Lessons Learned” conference: Solvency II helps ensure policyholders protection and ultimately increase the trust in the system” at All About Insurance News

Moody’s assigns a Baa1(hyb) rating to Aviva’s GBP400 million dated Tier 2 debt

London, 07 September 2016 — Moody’s Investors Service has today assigned a Baa1(hyb) rating to the GBP400 million subordinated debt issued by Aviva Plc under its GBP7 billion Euro Medium Term Note (EMTN) 003cb776fd89895dbd6fdfb6ff2f6281programme.

RATINGS RATIONALE

The Baa1(hyb) rating reflects (i) the subordination of the debt, (ii) the optional and mandatory weak coupon deferral mechanisms and (iii) the cumulative nature of deferred coupons, in case of deferral.

Moody’s says that the rating is one notch below the (P)A3 senior debt MTN rating of Aviva Plc, which is in line with Moody’s standard notching practices.

Continue Reading ” Moody’s assigns a Baa1(hyb) rating to Aviva’s GBP400 million dated Tier 2 debt” at Moody’s

Germany: reinsurance business by third country firms

Germany: Solvency II: BaFin provides interpretative decision on some aspects regarding the conduct of reinsurance business in Germany by insurance undertakings situated06-rothenburg-42-36146534-1680x1050 in third countries

In the past, the German Federal Financial Supervisory Authority (BaFin) published guidance on its web pages concerning correspondence insurance in the reinsurance sector (see RegZone report of 15 August 2016).

Following  this guidance, on 30 August 2016 BaFin has issued an official interpretive decision on some aspects regarding the conduct of reinsurance business in Germany by insurance undertakings situated in a third country, which  clarifies the earlier guidance.

Continue Reading “Germany: reinsurance business by third country firms” at Lexology

Admiral hoists dividend but solvency ratio sends ‘worrying’ signal

Insurer Admiral lifted its interim dividend by almost a quarter as the UK car and home insurance businesses cruised ahead, but profits were short of City forecasts and analysts angsted about a sharp drop in the Solvency II position in the half.

With group saupload_dividendsturnover of £1.26bn in the six months ending 30 June up 19% on the same period last year, group profit before tax rose 4% to £193m, though this was marginally short of the £191.8m consensus forecast, with earnings per share up by 2% to 55.9p.

The interim dividend was lifted 23% to 62.9p, of which 11.9p is an additional return of capital as a result of its strong solvency ratio.

This was despite the solvency position being hit by market volatility that resulted from the Brexit vote, with the Solvency II coverage ratio collapsing from 206% to 180% by the end of June as a significant reduction in interest rates increased group liabilities, especially in respect of its unstated PPO exposures, and hence reduced its own funds

Continue Reading “Admiral hoists dividend but solvency ratio sends ‘worrying’ signal” at Digital Look Web Financial Group

Twin pillar approach urged after Brexit vote

A new business relationship with Britain in the wake of its vote to leave the EU is “critical”, an island business leader said yesterday.

Bradley Kading, president stone-pillars-stone-columns-doorposts-manufacturers-1258008221-0and executive director of the Association of Bermuda Insurers and Reinsurers, said the island needed a twin pillar approach to Britain and the EU to ensure business did not suffer as a result of Brexit.

Mr Kading said that the EU was the second most important insurance market for ABIR members after North America.

He added: “Because Europe is such an important market to us, Bermuda has acted to win Solvency II equivalence, engage with critical International Association of Insurance Supervisors regulatory work streams, enact Organisation for Economic Cooperation and Development tax transparency, co-operation and enforcement rules and build relationships with key EU officials and key jurisdictional insurance supervisors.

Continue Reading “Twin pillar approach urged after Brexit vote” at The Royal Gazette

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