Allianz, Generali post €52bn in fair value losses in H1

Bond portfolio values crash as equities tailwinds fades

Allianz and Generali suffered a combined loss of €51.6 billion ($52.9 billion) on their available-for-sale (AFS) portfolios in the first half of the year, as bond gains quickly turned into losses amid spiralling global yields.

In a stark reversal from the hefty net gains reported until the end of last year, corporate and sovereign bonds, which make up the overwhelming majority of the AFS book at both insurers, produced unrealised losses of €49.2 billion at Allianz and €24.7 billion at Generali