Life insurers stuck with the riddle of the risk margin

Of all the innovations of Solvency II, the risk margin threatens to be the most painful for UK life insurers. The transitional benefit will provide relief against it on 1 January, but in the long run it may do more harm than good. Hugo Coelho reports


Just Retirement and Partnership launch £150m share issue

Merger partners looking to smooth transition to Solvency II


Interest rate and mortality swings justify recalculation of Solvency II transitional benefit

PRA sets expectations about scope and variation of transitional measures


Bug-fix increases benefit of Solvency II adjustments

Fundamental spreads of long-dated bonds cut by dozens of basis points, says Nomura


Gilt-swap spread risk charge to accelerate ALM rethink

A request by the UK regulator for internal firms to hold capital against the basis risk in their government bond portfolios will increase incentives for the insurers to move away from long-dated government bonds into swaps. Hugo Coelho reports


InsuranceERM's Most Influential 2015

The personalities shaping risk and capital management in Europe are revealed


Eiopa slashes matching adjustment benefit

Change in rules drives up fundamental spread by dozens of basis points


Flawed volatility adjustment portfolio hurts UK insurers

Eiopa commits to update reference portfolios annually with a one-year lag


Eiopa sticks to "exaggerated" Solvency II discount rate

MEP urges Commission to change level of UFR amid signs of 'Japanification'


U-turn on risk margin welcomed

Follows months of intense lobbying from UK industry