The ability to invest over the long term should be a clear source of value for insurers. Their annuity books and other long-term liabilities allow them to consider assets that are less attractive to most other investors because of their illiquidity, and for which insurers would naturally expect a premium. Furthermore, in the UK in particular, firms can benefit directly from a buy-and-maintain strategy through the Solvency II matching adjustment. At the same time, banks, which previously
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