German life insurers more exposed due to asset-liability mismatch
Thursday, 08 11 2016, Category: Insurance and Reinsurance, Country: Germany
German life insurers are more exposed that their peers in other countries to the risk of low interest rates for an extended period due to asset-liability mismatches and the widespread use of investment guarantees to customers, according to Fitch Ratings.
Firms are adapting by changing their business mix and re-pricing, but Fitch suggests a further fall in yields they receive when reinvesting maturing assets put profitability and capitalisation under pressure, which in turn would affect ratings.
Source: Intelligent Insurer