Insurance
ATP hits out at resurgence of hybrids
Hybrid debt is in the firing line for offering equity risk but only bond yields
Scor eyes UK pension funds’ longevity risk
Reinsurer Scor becomes the latest firm to enter the longevity arena
Capital levels for Sampension would have tripled under Solvency II without retreat from intentional guarantees
Longevity component of Solvency II drives Danish pension fund away from hard guarantees
OECD urges IASB to review scheme definitions
International body says there is "a lot of confusion in the treatment of a lot of plans around the world".
Basis risk no barrier to longevity securitisation say experts
Academics and JP Morgan team show how to mitigate exposure from differences between population mortality rates
Danish pension funds hit out at cross-subsidy regulation
PKA and Sampension say cross-subsidy regulation threatens Danish pension system
Aegon rescue aid contingent on VA hedging programme
EC makes variable annuity hedging a factor in Aegon bailout approval decision
Uncertain outcomes – insurers and pension funds tackle inflation risk
With central banks’ discount windows pouring money out at rock-bottom rates but economies still slow to use up excess capacity, the outlook for inflation has never been murkier. Uncertainty has created arbitrage opportunities for inflation risk managers…
Insurers prepare for M&A explosion
A number of drivers could push financial groups to dispose of life insurance assets in the near future. But a boom in M&A will also need buyers, which could prove difficult to find. By John Ferry
LLMA on course to publish first longevity index by end of 2010
LLMA will add a fillip to longevity derisking market with standardised indices
PPF offers potential £80 billion boost to longevity market
UK’s PPF is open to longevity derisking – at the right price
Pensions face RPI-CPI basis risk
Pension pricing peril
EC approves Aegon bailout without forcing coupon deferrment
Absence of measures forcing payments to Dutch state at expense of subordinated debt holders means Fitch upgrades firm's hybrid capital
Hedging costs to soar for UK pension funds
Best of RPI and CPI exposure will cost up to 100 basis points to hedge, as well as increase the size of liabilities, say participants
FTSE100 market values dwarfed by scheme deficits
For three firms, pension liabilities are more than double their equity market value
Asia Risk 15: Mastering mismatches by using ALM risk tools
The development of domestic bond markets and longer-dated hedging instruments in Asia during the past 15 years has helped insurers to manage their duration mismatches. But there is still a long way to go. By William Rhode*
Cat bonds set to become new face of structured credit, say Axa chiefs
Two senior heads at Axa Investment Managers anticipate escalating demand for catastrophe bonds.
Korean linker volumes soar after introduction of deflation floors
The resumption of issuance of government linkers, which now include deflation floors, should aid the development of inflation derivatives in South Korea
Morgan Stanley and UBS boost LLMA membership to 10
Life & Longevity Markets Association gains momentum
Shift to CPI will not impact pension fund inflation hedging demand – M&G
Limited impact of CPI change on pension funds inflation hedging
OECD urges pension regulators to reduce importance of market consistency in stressed periods
OECD argues market values should not drive pension regulation
The longevity challenge of care annuities
For most of the life industry, getting policyholder longevity predictions accurate to a few months of the realised experience would be cause for celebration. But for care annuity provider Partnership, this level of accuracy could be disastrous. Aaron…