Fitch: Market Conditions Pushing Bermuda Consolidation Pressure

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Posted on 27th January 2015 by Solvency 2 News in Bermuda

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HICAGO, Jan 27, 2015 (BUSINESS WIRE) — According to a new Fitch Ratings report, the Bermuda market is seeing increased consolidation activity in 2015, as several companies have recently jumped into the merger and 7350248744_393205c6b4_bacquisition (M&A) forum to combat the competitive stress in the (re)insurance market.

These Bermuda deals include PartnerRe Ltd.’s recently announced merger with AXIS Capital Holdings Ltd., XL Group plc’s expected acquisition of Catlin Group Limited, and RenaissanceRe Holdings Ltd.’s agreement to acquire Platinum Underwriters Holdings Ltd. This trend is driven by challenging market conditions that are limiting organic growth potential. Record capitalization among traditional (re)insurers along with the growing capacity provided by alternative capital providers are softening reinsurance pricing, with no catalyst for a reversal in sight.

Continue Reading ” Fitch: Market Conditions Pushing Bermuda Consolidation Pressure ” at Market Watch

Zurich Insurance implements Europe-wide BearingPoint Solvency II reporting solution

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Posted on 23rd January 2015 by Solvency 2 News in Europe

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Management and technology consultancy BearingPoint announced the signing of a contract with Zurich Insurance Group for the implementation and use of BearingPoint’s ABACUS/Solvency II reporting solution for 252010-kodiak-bear-1 affiliates.

This standard software package enables comprehensive regulatory reporting in accordance with the new Solvency II requirements in the EU.

It is built on BearingPoint’s ABACUS solution suite that is widely used in European countries to address Basel III, EMIR and further regulations. ABACUS/Solvency II comprises data collection, validation, preparation and Solvency II supervisory reporting.

Continue Reading “Zurich Insurance implements Europe-wide BearingPoint Solvency II reporting solution” at IBR Technology

Insurance Europe responds to publication of Solvency II Delegated Acts – a useful reminder that nothing’s finished, even when it’s done

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Posted on 21st January 2015 by Solvency 2 News in Europe |UK

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Insurance Europe has welcomed the publication and coming into force of the Solvency II Delegated Regulation (our prior blog is here), with a gentle (but very useful reminder) that nothing’s finished, even when it’s done.keep-calm-im-not-done-yet

Olav Jones, deputy director general of  Insurance Europe said, “The adoption of the Delegated Acts is an important, and very welcome, step forward … Solvency II is, however, a huge piece of regulation and it is important that the review processes built into it are used to make a number of important refinements and improvements, particularly regarding unnecessarily high capital charges for long-term investments which are crucial to European Economic growth. We welcome the letter sent by Parliament which raises some of the same issues that we had indicated would need improvement and follow-up“.

The letter that Olav refers to was sent by Roberto Gualtieri, the Chair of the Committee on Economic and Monetary Affairs of the European Parliament to Jonathan Hill, the European Commissioner for Financial Stability, Financial Services and Capital Markets on 19 December 2014. In his letter, Roberto Gualtieri draws attention to some typographical errors in the Delegated Regulations, raises some questions about the way in which some of the empowerments have been used and described, and then attaches a “to do” list of work that still has to be done. That work includes that:

Continue Reading “Insurance Europe responds to publication of Solvency II Delegated Acts – a useful reminder that nothing’s finished, even when it’s done” at Lexology

Fitch: New International Insurance Regulations Pose No Threat to Ratings

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Posted on 20th January 2015 by Solvency 2 News in Europe |UK

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(The following statement was released by the rating agency) Link to Fitch Ratings’ Report: New International Regulations No Threat to Ratings here LONDON, January 20 (Fitch) Fitch Ratings says in a new report that insurers’rti-logo ratings are likely to be unaffected by the significant changes to international regulation coming into force over the next few years.

The agency expects that some insurers will face higher capital requirements. In our view, these insurers are already well capitalised.

However, any further capital requirements could negatively affect cost of capital and competitiveness. Fitch believes that the increased focus on international regulation should also lead to further improvements in risk management.

Continue Reading “Fitch: New International Insurance Regulations Pose No Threat to Ratings” at Reuters News

Solvency II seen boosting LatAm reinsurance demand

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Posted on 15th January 2015 by Solvency 2 News in Brazil |Europe |Mexico

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The implementation of solvency II-based regulatory frameworks in Latin America should boost demand for reinsurance as insurers seek reinsurance capital relief through reductions in net retained risk exposure, said Swiss Re in a report.Caracas,_Venezuela_from_Valle_Arriba_1

Non-proportional reinsurance in particular should become more attractive under solvency II, said the reinsurer.

“[Under solvency II] standard excess of loss (XOL) treaties can be used against specific capital-intensive exposures (albeit for now only for non-life insurers), thereby allowing for more targeted and efficient capital relief than under fixed factor models, which favor proportional reinsurance,” said Swiss Re.

Continue Reading “Solvency II seen boosting LatAm reinsurance demand” at BNI Americas News

Concerns over Solvency II effect on pensions

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Posted on 15th January 2015 by Solvency 2 News in Europe |UK

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The European Insurance and Occupational Pensions Authority’s insistence on pushing through a solvency system for defined benefit pensions comes at the worst possible time for UK providers planning for the UK’s ownpension_security.jpg.size.xxlarge.letterbox retirement reforms, experts told FTAdviser.

In its response today to Eiopa’s consultation on the IORP Directive, the industry body’s chief executive Joanne Segars stated that she was “very disappointed” by continued work on the holistic balance sheet project.

Under the holistic balance sheet approach, DB scheme assets would include both the financial and contingent assets, plus the sponsor’s covenant, while the liabilities would include the best estimate, a risk buffer and a surplus item where assets exceeded liabilities.

Continue Reading “Concerns over Solvency II effect on pensions ” at FT Advisor News

Asset managers with insurance mandates ‘lulled into false sense of security’, says Citisoft

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Posted on 7th January 2015 by Solvency 2 News in Europe |UK

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Citisoft, a leading global investment management consulting firm, has launched a facility for asset managers deliberating how to meet the pressing ‘Pillar III’ data delivery expectations of Solvency II.Computer Security

Due to come into effect on 1 January 2016, Solvency II aims to implement solvency requirements that reflect the true risks that companies face and deliver a consistent supervisory system. This EU regulation places immense data creation and data management burdens on insurance firms. Citisoft believes that this seemingly distant date has lulled some asset managers with insurance mandates into a false sense of security.

Continue Reading “Asset managers with insurance mandates ‘lulled into false sense of security’, says Citisoft” at Bobs Guide

Solvency II capital rules may spark insurer mergers and acquisitions

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Posted on 4th January 2015 by Solvency 2 News in Europe |UK

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As insurers and reinsurers across Europe make their final preparations for Solvency II, the introduction of the long-awaited risk-based capital rules may spark merger and acquisition activity.merger_HeaderImage

While many insurers and reinsurers are well-prepared for the new regime, which will come into force in 2016, those that find aspects of the rules too onerous could become takeover targets, experts say.

“Over the coming year, the re-energizing of Solvency II will see insurance firms weighing the expense against the benefits of compliance in the lead-up to 2016 implementation,” London-based accountancy firm Moore Stephens L.L.P. said in a December note.

Continue Reading “Solvency II capital rules may spark insurer mergers and acquisitions” at Business Insurance News

Global capital standard for insurers moves a step closer, but KPMG warns there is much still to do

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Posted on 27th December 2014 by Solvency 2 News in Europe |UK

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The FINANCIAL — The release by the International Association of Insurance Supervisors (IAIS) of its consultation paper on a risk-based global insurance capital standard (ICS) is the latest Working-Too-Muchinstallment in a multi-year program towards developing a global insurance capital standard.

While this is one step closer to having a clear standard that global insurers can adopt, further regulatory reform may be required to ensure that it is consistent, according to KPMG International Cooperative.

ICS will apply on a group-wide, consolidated basis to around 50 of the largest international insurance groups (IAIGs) from 2018, with confidential reporting to supervisors starting in 2017. Key areas covered by the consultation paper relate to valuation, qualifying capital resources and potential approaches for determining capital requirements.

Continue Reading “Global capital standard for insurers moves a step closer, but KPMG warns there is much still to do” at FINANCIAL NewsKPMG

 

European insures face ‘make or break’ year in 2015

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Posted on 22nd December 2014 by Solvency 2 News in Europe |UK

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An industry expert has warned that 2015 would be the ‘make or break’ year for European insures as the industry works on implementation of the Solvency II regulatory regime. az1295_fig1

Simon Gallagher, head of the insurance industry group at international accountancy firm Moore Stephens, said 2014 had been a difficult year for the insurance industry.

He said there would be ‘no let up’ in the coming year, with the industry also facing a challenge to maintain profits in a tough environment while also being seen to be treating customers fairly in an invasive regulatory environment.

Continue Reading “European insures face ‘make or break’ year in 2015″ at The Actuary News