Reinsurers urged to expand equities allocation amid 'fixed-income bubble' fears

Stock market

Reinsurers need to increase their investment in equities to hedge the interest rate and inflation risks on their large fixed-income portfolios, according to reinsurance broker Guy Carpenter.

In recent years, reinsurers have invested heavily in high-grade, low-yield fixed-income securities as a result of the crises in the financial markets and the eurozone. At the same time, their allocation to equities has shrunk.

"The equity gearing of the sector is at the lowest point it has been at since we'v

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: