Dutch insurers cut sovereign holdings after discounting switch

Firms shrink government debt as they move to swap-based discounting


Dutch insurers are fast-tracking plans to reduce holdings of long-dated, low-yielding government bonds after switching to swap-based discounting in the second half of last year.

According to investment managers, portfolios of sovereign bonds held by Dutch insurers have shrunk an estimated 2–5%, with investment redirected to short-dated debt and high-yielding alternatives such as mortgages and infrastructure.

The reallocation is driven partly by the opportunity to lock in profits in sovereign hol