Insurers plotting portfolio shifts amid ultra-low rates
Regional life insurers will seek to reweigh their portfolios to seek out sufficient returns in the low rate environment, reduce duration gaps and adapt to new capital rules.
A mixture of low fixed income returns, dropping currency swap rates, a need to reduce duration gaps and regulatory changes are leading life insurance companies across Asia to reassess their investment portfolios, and could cause sizeable portfolio shifts.
An in-depth new report on Asia’s life insurers by Moody’s on Wednesday (July 29) noted that the likelihood of lower-for-longer interest rates after the coronavirus abates are set to make insurers change their investment allocatio…
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