All articles by LII editorial
LII editorial
PensionsFirst tackles defined benefit conundrum
PensionsFirst tackles defined benefit conundrum Claiming to offer a groundbreaking new approach to managing longevity exposure and market volatility risks for defined benefit DB pension schemes, PensionsFirst opened its doors for business in London in November PensionsFirst explained that its proprietary risk management platform enables it to separately analyse each of the risks a DB scheme faces such as longevity, inflation and investment market risks, down to the individual member level, and remove those exposures it does not wish to manage, while retaining those with which it is comfortable and for which it wishes to retain the upside potential
A tough market is getting tougher
During the first half of 2008 Chinas life insurance market recorded its highest growth in premium income in a decade For listed domestic insurers the reward has been plummeting share prices, while for foreign insurers as a group it has been a boom that has to a significant extent passed them by. Chinas life insurance industry has presented a mixed picture so far this year with surging premium income contrasting with sharp reversals in investment performance of a number of major players and substantial falls in share prices of listed insurers.
Alternative assets go mainstream
Exotic alternative asset classes have for many years been used by large financial institutions and their wealthy private clients as a means of risk diversification Now this investment avenue is about to become available to a far wider audience with the launch by asset manager Skandia Investment Group (SIG) of a multi-manager fund offering investors access to a range of alternative asset classes within a single structure. According to SIG, a unit of UK insurer Old Mutual, the new fund is unique in that instead of investing into one alternative asset class it will invest in 10.
Reinsurance lifeline thrown to insurers
Reinsurance lifeline thrown to insurers Even in the dire circumstance the worlds financial market finds itself in opportunities are presenting themselves to companies positioned to seize them This is the view German reinsurer Munich Re is taking as it eyes opportunities for reinsurance as a direct substitute for what has become a scarce resource, capital.
South Africa’s daunting protection gap
Though classified as a developing economy, South Africa boasts one of the highest life insurance penetration in the world 12.97 percent of GDP in 2006, according to reinsurer Swiss Re This ranks the country second in the world, behind only the UK on 13.11 percent, Despite this, a study commissioned by industry body the Life Offices Association (LOA) has revealed a yawning protection gap In the study undertaken by actuarial consultancy True South, actuaries Francois Hugo and Paul Zondagh found the total insurance gap ranges from between ZAR5.64 trillion ($745 billion) and ZAR10.33 trillion
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Aviva forges major bancassurance alliance in Poland
Aviva forges major bancassurance alliance in Poland UK insurer Aviva and Polish bank Bank Zachodni (BZ) have entered into an exclusive 15-year bancassurance partnership that includes the establishment of 50:50 joint venture life and general insurance companies The bancassurance arrangement will significantly enhance Avivas distribution network in Poland, complementing our well-established direct salesforce and the direct motor insurance service which will launch later this month, said Aviva group finance director Philip Scott
ING’s major step forward in the US
In a move that will substantially enlarge its footprint in the US pensions market, Netherlands bancassurer is to acquire defined contribution pensions plan administrator CitiStreet, a 50:50 joint venture between global financial services providers Citigroup and State Street Corporation, in a $900 million cash deal
Strong second quarter for US variable annuity sales
Registering the third straight quarter of growth, the VA industry recorded total net inflows of $8.7 billion in the three months to 30 June 2007, an increase of 34.8 percent compared with the first quarter of 2007 and 6.2 percent up on the second quarter of 2006 Perhaps more indicative of a rising trend in VA sales, the average quarterly net inflow during the four quarters to 30 June 2007 stood at $7.39 billion, a 15.3 percent increase compared with an average net quarterly inflow of $6.41 billion during the previous four quarters to 30 June 2006
Tough asset management market starts to become even tougher
Tough asset management market starts to become even tougher In the tough global asset management arena the insurance industry is losing ground in the contest for market share, indicates a study undertaken by consultancy Watson Wyatt This was particularly evident in 2007 when the industry conceded considerable market share to independent asset managers. According to Watson Wyatt, based on the top-20 players that accounted for 37.5 percent of the $69.4 trillion managed at year-end by the 500 largest players, insurers market share fell to 20 percent in 2007 the lowest level in 10 years and significantly below a peak of 35 percent achieved in 2004.
AIG takes a subprime tumble
The US subprime residential mortgage market fiasco that has decimated profits of countless big-name banks has made its presence painfully felt in the results of American International Group (AIG), the worlds largest insurer in terms of assets With its fourth-quarter 2007 results decimated by subprime-related realised losses of $2.63 billion ($1.71 billion after tax) and impairment charges of $11.47 billion ($7.46 billion after tax), AIG reported a fourth-quarter net loss of $5.29 billion, the biggest quarterly loss in the companys 99-year history