Belgian insurer Ethias establishes multi-employer pension fund

Belgian public sector insurance company Ethias has set up a pension fund using the country’s dedicated legal vehicle for thesebruges_belgium-t2 purposes, the Organisme voor de Financiering van Pensionen (OFP).

The “organisation for financing pensions”, as the Flemish term for the country’s pension fund legal form translates into English, was set up in December 2015 and is called Ethias Pension Fund.

The pension fund is still in the early stages of its establishment, and a spokesperson for Ethias said the company did not wish to comment at this point of its development.

Continue Reading ” Belgian insurer Ethias establishes multi-employer pension fund” at Investment Pension Europe

BearingPoint Clients across Europe Go Live with First Wave of Solvency II Reports

Insurers in 21 European countries successfully submit Solvency II “Day 1” and the first quarterly reports using BearingPoint’s Abacus solution

FRANKFURT, Germany–15745(BUSINESS WIRE)–Management and technology consultancy BearingPoint, which ranks among the leading providers of Regulatory Technology (RegTech), announces the successful go-live for the first wave of Solvency II reports for clients across Europe, such as Zurich Insurance Group, Swiss Re, Länsförsäkringar, Médicis and others.

Insurers in 21 European countries using BearingPoint’s proven ABACUS/Solvency II platform submitted the “Day 1” reports and the first quarterly reports at the end of May to local supervisors in various European countries, such as the Central Bank of Ireland, PRA in the UK, BaFin in Germany, CAA in Luxembourg, FI in Sweden, IVASS in Italy, ACPR/Bank de France, and FMA in Austria.

Continue Reading “BearingPoint Clients across Europe Go Live with First Wave of Solvency II Reports” at Business Wire

Solvency II changes may threaten investment returns for policyholders

Rushed changes to the ultimate forward rate (UFR) could risk pushing insurers towards sub-optimal investment strategies, solvency-2-2012-web-512x288which could unnecessarily impact policyholders’ returns negatively, according to Insurance Europe, the European insurance and reinsurance federation.

It says that it is unnecessary to change the UFR before the Solvency II review stressing that the current framework has several additional layers of protection in place already to make sure policyholder claims will be paid.

On possible changes to the methodology for calculating the UFR to a European Insurance and Occupational Pensions Authority meeting, Insurance Europe said there is no need for changing it either for prudential or policyholder protection reasons.

Continue Reading “Solvency II changes may threaten investment returns for policyholders” at Intelligent Insurer

IORP II Directive finalised as UK votes to leave the EU

The new IORP Directive, which emerged from the EU’s Trilogue negotiations on 30 June 2016, will introduce new governance and disclosure requirements for occupational pension plans within the EU.Brexit-Flags

It will also relax the funding requirements for cross-border schemes and introduce greater member protection on cross-border transfers.

In light of the UK’s EU referendum result it is uncertain whether the Directive will apply to UK occupational pension plans.

However, the interaction of the exit negotiations and the implementation period for the Directive, and the ultimate shape of any exit, means that it is impossible to say at this stage that the Directive will not be relevant.

Continue Reading “IORP II Directive finalised as UK votes to leave the EU” at Eversheds

Mifid II, Solvency II most concerning for asset managers

A straw poll of asset managers by data management provider Accudelta found that over half (52%) said that Mifid II was the most enhanced-11865-1438605605-7important regulation for their firm this year, with Solvency II coming in second with 26%.

With a raft of existing and upcoming regulation to address, many asset managers said that they are looking for ways to minimise the reporting burden associated with both pieces of regulation, with some looking to reuse reporting and regulatory data.

Mifid II

Adopted in 2007, the existing Markets in Financial Instruments Directive (Mifid) aims to improve the competitiveness of EU financial markets by creating a single market for investment services and activities, and…

Continue Reading “Mifid II, Solvency II most concerning for asset managers” at Portfolio Advisor

Brexit: What does it mean for the insurance industry?

As we have discussed in our prior communications over the last two weeks1, the majority vote in favour of the UK’s departure from the European Union (“EU”) 25112888022_e7fdcdbdb1_bmeans that businesses operating in the UK now face a period of uncertainty, no more so than in the insurance industry.

The UK insurance industry is the largest in Europe and the third largest globally, contributing over £25 billion annually to the UK GDP.

The decision to leave the EU will have specific effects on the insurance industry depending upon the terms of exit to be negotiated with the EU.

Continue Reading “Brexit: What does it mean for the insurance industry?”

Bank of England relaxes rules for insurers

The Bank of England has made life easier for insurers by relaxing the rules on how they have to respond to market movements.63594187055686284180431796_relax8

The EU’s Solvency II capital regime, introduced at the start of this year, makes insurers mark their assets and liabilities to market.

When market interest rates fall — as they have done recently — the value of life insurers’ long-term liabilities rises, potentially creating a hole in their balance sheets.

Continue Reading “Bank of England relaxes rules for insurers” at Financial Times

Solvency II: external audit of the Solvency & Financial Condition Report

Under the PRA’s Solvency II-implementing rules, (re)insurers are required1 to publish an annual Solvency & Financial Condition Report (SFCR)Hindsight, which describes:

  1. the (re)insurer’s business and performance;
  2. the (re)insurer’s system of governance, and an assessment of its adequacy;
  3. (on a risk-category by category basis), the risk exposure, concentration, mitigation and sensitivity;
  4. the bases and methods used to value the (re)insurer’s assets, technical provisions, and other liabilities, together with an explanation of any major differences in the bases and methods used for their valuation in the (re)insurer’s financial statements;

Continue Reading “Solvency II: external audit of the Solvency & Financial Condition Report” at Lexology

Looking for Markets? Bermuda Market Associations Allay Fears of Brexit Contagion

Four leaders of Bermuda market groups quickly issued statements last week to 2000px-Biohazard_symbol.svgallay any fears that the fallout from the UK’s Brexit vote would hit their market as well.

“In a global economy, Bermuda is affected, like other nations, by such major events,” said Ross Webber, CEO of the Bermuda Business Development Agency (BDA). “We stand ready to deal with myriad eventualities.”

Whatever way the UK’s EU exit unfolds, Webber reminded the agency’s “business partners in the UK that Bermuda continues to offer the same stable, attractive, effective and proven blue-chip international business domicile as it has for the past 70-plus years.”

Continue Reading “Looking for Markets? Bermuda Market Associations Allay Fears of Brexit Contagion” at Insurance Journal News

Brexit prompts 13-point drop in L&G’s Solvency II ratio

Turbulent financial markets have caused Legal & General’s (L&G) Solvency II Regular_star_polygon_13-5.svgcapital requirement (SCR) ratio to slip to 156% with a capital surplus of £4.9bn ($6.5bn), down from 169% and £5.5bn respectively at the end of 2015.

Responding to a near 30% drop in its share price since the announcement of the Brexit vote on 23 June, the UK insurer clarified its solvency position and the moves it took to rebalance its portfolio ahead of the referendum.

“Legal & General’s central planning scenario, ahead of the referendum, was for a 50-50 probability of a vote for the UK to leave,” L&G said on 28 June. “We positioned our balance sheet accordingly to reduce risk for our customers and shareholders.

Continue Reading ” Brexit prompts 13-point drop in L&G’s Solvency II ratio” at Insurance ERM

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