Most European insurers are examining changes to their investment mix to adapt to the adverse investment climate, which includes record-low interest rates that challenge the earnings and capital adequacy of insurers, Standard & Poor’s Corp. said Wednesday in a report.
But on average, most European insurers’ strategic asset allocations have remained broadly stable the past five years, S&P said in the report, “How West European Insurers Are Scrutinizing Asset Allocations and Business Models in Today’s Adverse Environment.”
According to the report, which studied about 40 insurers rated by S&P, adapting to the challenging investment environment “is not as easy as chasing after higher-yielding investments.”