Insurers bolster inflation protection

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Insurers are scaling up their inflation hedging activity in response to growing concerns over the threat of rising prices.

Companies are increasing their allocations to inflation-linked bonds (ILBs) and other physical hedge assets as well as ramping up their purchases of inflation swaps, according to bankers and analysts.

This comes as research by Goldman Sachs Asset Management (GSAM) finds that defending earnings from the threat of inflation has become a higher priority for insurance companies