Poor asset returns threaten EU insurers’ profitability

Returns on investments by European Union life insurers cratered in 2018, with the median firm reporting a 0% return, compared with 3.1% in 2017.

Data from the European Insurance and Occupational Pensions Authority (Eiopa) shows that the collapse was caused by a fall in the prices of government and corporate bonds, equities and funds.

Bonds made up 39.7% of EU life insurers’ portfolios as of Q4 2018, unchanged on the year prior. Funds made up a 38.2% share, up from 37.3% on Q4 2017 and