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Subscribe nowSecuritisations, hedge funds, real estate and private equity are not favoured assets based on Solvency II capital charges, but derivatives may offer insurers some flexibility, as Safraz Thind explains
Solvency II is driving changes in the way insurers manage their assets, with equities looking likely suffer. But how big an impact on asset allocation overall will there be? Sarfraz Thind looks at the implications for bonds and equities. A subsequent article will cover other investment classes
Aviva has joined the Life & Longevity Markets Association, bringing the LLMA's membership to eleven.
Although implementation of Solvency II is only just over two years away, many issues still have to be resolved which could significantly change the impact of the directive. Jon Hocking and Farooq Hanif of Morgan Stanley and Lukas Ziewer and Astrid Jaekel of Oliver Wyman highlight the issues and explain the uncertainties around them.
Morgan Stanley and Oliver Wyman's proprietary QIS5 model estimates a decline in the headline solvency ratio for listed European Insurers from ~200% to 135% under Solvency II and it provides many other insights into the way corporate strategy will be affected. The main ones are summarized here by Jon Hocking and Farooq Hanif of Morgan Stanley and Lukas Ziewer and Astrid Jaekel of Oliver Wyman.
Oliver Wyman/Morgan Stanley report sees increased ALM and product restructuring