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Shoring up defences

Recurso electrónico / Electronic resource
Colección: Artículos
Título: Shoring up defences / Niamh Carr, Kamran ForoughiAutor: Carr, Niamh
Notas: Sumario: The insurance sector has delivered solid returns during the past decade. Before this year's COVID-19-related market turmoil, the sector had outperformed the wider market in six of the past eight years, as well as substantially outperforming the banking sector. During the past 10 years, the insurance sector has delivered a total return of 116%, versus 72% for the market and -60% for the banking sector. While there is room for improvement, the stable and steady nature of the business model coupled with its ability to manage balance sheets and pay dividends is clearly appreciated by investors. A notable change since the 2007-08 financial crisis has been the advent of Solvency II, which has put the market in a stronger position to react in times of volatility and uncertainty. In response to COVID-19, some insurers were quick to announce more up-to-date estimated Solvency II capital ratios in order to prove resilience and demonstrate support for intended dividends, with figures published a week or so after the valuation date. In the immediate aftermath of the outbreak, we understand that a number of investors also asked analysts to produce estimated weekly Solvency II ratios. The majority of insurers have proved to have good capital resilience on this basis, showing that a key aim of Solvency II has been met.Registros relacionados: En: The Actuary : the magazine of the Institute & Faculty of Actuaries. - London : Redactive Publishing, 2019-. - 01/09/2020 Número 8 - septiembre 2020 , p. 32-33Materia / lugar / evento: Mercado de seguros COVID-19 Pandemias Rendimiento Solvencia II Empresas de seguros Otros autores: Foroughi, Kamran
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