Capital
Bundesbank’s Buch slams lower capital for insurers in infrastructure
Deputy president says the use of prudential regulations to achieve economic policy objectives is “highly problematic”
Own funds rule will reduce reported solvency ratios, say insurers
The insurance industry says measures intended to stabilise firms’ Solvency II own funds in stressed markets will have unintended consequences, making their capital ratios worse
Cuts to securitisation capital charges too small, say experts
Proposed changes to the capital charges for securitisations under Solvency II are too limited, say experts. However, the amended charges should stop insurers becoming forced sellers of lower risk asset-backed bonds
The economic view
Insurers are using the delays to Solvency II to improve their economic capital models
Insurers explore new risk metrics in bid to refine economic capital models
European insurers are refining their internal economic capital models as regulators’ efforts to define statutory solvency requirements grind to a standstill. Louie Woodall reports
Insurers embrace innovative hybrid capital structures
Contingent capital bonds are becoming increasingly attractive, writes Louie Woodall. But regulatory reforms mean firms must ensure they have a firm grip on the inner workings of these products
More UK insurers to publish economic capital data next year
Firms look to make model outputs publicly available to test investor response to future Solvency II requirements
Global capital standard raises calibration and consistency questions
International efforts to develop a global capital standard are gathering pace, but the plans are controversial, raising fears that the competitiveness of international insurance groups could be damaged. There are also questions over how any global…
Insurers developing internal model risk calibrations for non-standard credit assets
Underlines growing strategic importance of infrastructure bonds and MBS, finds survey
New EU state aid guidance may force insurers to adjust capital structure
Lawyers split on whether subordinated debt will be made convertible by law
Insurers protect against Solvency II disqualification with transforming instruments
Aviva and Uniqa hybrids feature capital disqualification triggers
Denmark to introduce Solvency II shocks to insurer capital requirements
Firms warn regulator against setting an unduly ambitious timeframe for implementing new standard methodology
Restructuring gathers pace as insurers look to improve capital efficiency
The insurance landscape is evolving as firms begin to sell business units to non-insurers in their attempt to survive a changed financial climate. Louie Woodall reports
Insurers target value-in-force monetisation transactions to boost regulatory capital
But securitisations still a challenge, say experts
Perpetual sub debt from insurers appeals to investors
Insurers are tapping the Asia market to raise capital, with innovatively structured instruments. Investor appetite for this debt has enabled insurers to move from classical issuance structures to perpetual notes
Regulatory uncertainty 'a barrier' to issuance of contingent capital by European insurers
Lack of clarity on Solvency II dampening investor interest, while Swiss insurers reap benefits of stable regime
Asian investors provide boost to insurers' debt financing efforts
2012 was a buoyant year for debt capital raising by insurers, with companies tapping into the Asia market and issuing innovatively structured instruments. Investors’ appetite for insurance company debt has enabled insurers to move from classical issuance…
Insurers welcome FSA concessions on mutual capital
But questions remain over cost and complexity of regulator's proposals
Insurers grapple with Solvency II economic capital projections
Solvency II’s requirement for insurers to project capital calculations forward over a number of years is a significant challenge for insurers that are still grappling with modelling their year-one requirements. As Clive Davidson finds, there is…
Mutuals warn of capital threat from UK 'twin peaks' regulation
Guidance needed on treatment of with-profits fund surpluses under new supervisory regime