Pessimistic re/insurers struggle on low investment returns
Wednesday, 04 29 2015, Category: Insurance and Reinsurance, Country: World
Insurance and reinsurance companies are at their most pessimistic on the prospects for the industry, according to the results of a survey undertaken by Goldman Sachs Asset Management, as low investment returns take their toll.
Finding attractive investment opportunities remains a key concern for insurance and reinsurance firms, according to the survey by GSAM. In an investment climate characterised by zero to negative yields on safe assets, low returns across much of the yield curve, expensive equities with markets at highs, and tight spreads, re/insurers are struggling to put money to work effectively.
The fourth edition of GSAM’s survey, titled this year ‘Too Much Capital, Too Little Return’, saw insurers and reinsurers respond the greatest amount of pessimism since the first edition of the survey.