Barclay’s Capital, a worldwide investment bank based in the UK, has launched a new initiative that is aimed at providing the insurance industry with added protections against natural disasters. The financial institution will begin supplying insurance-linked securities that will embolden the insurance industry against catastrophes. The new service will help placate the concerns of investors who are growing leery of the insurance industry’s constant struggle with disastrous storms and other events. Barclay’s believed that the insurance-linked security products will help the industry cope with any financial turbulence it may experience…
Read MoreTag: financial news on insurance market
1 in 10 European insurance companies fail stress test despite a robust market
The European insurance industry is in a state of flux, according to a new study from the European Insurance and Occupational Pensions Authority (EIOPA). The organizations recently conducted a stress test of nearly 130 as yet unidentified insurers. The test showed that the insurance market is quite robust, which means that most insurers are able to procure new clients and produce significant revenue. However, the thirteen unnamed insurance companies failed the test. Based upon its findings, the EIOPA estimates that these insurers would not be able to handle the impact…
Read MoreReinsurance industry’s future is stormy, may be at risk in the event of a major natural disaster
The global reinsurance industry is under enormous pressure to quickly recover from the calamitous events that happened all over the world earlier in the year. Natural catastrophes have taken a massive toll on insurance companies worldwide, and as these companies hemorrhage money, so too do reinsurers as they pour funds into these companies to keep them afloat. While the severity of disasters occurring earlier in the year has not been overtly cataclysmic, the frequency in which they occurred has put strain on a somewhat unstable global economy. Now, insurance and…
Read MoreProperty/Casualty Insurers see first quarter profit drops from increasing underwriting losses
Property/Casualty Insurers, a private American company, reported that after taxes, their net income fell to $7.8 billion within 2011’s first quarter from last year’s first-quarter profits which were at $8.9 billion. Moreover, there was a drop from 6.8 percent to 5.6 percent in that insurer’s average policyholder surplus annualized rate of return. As a result of the net income of the insurer of $7.8 billion after taxes, the surplus of policyholders did rise by 1.4 percent to $7.8 billion, to hit a record by March 31 of $564.7 billion. This…
Read More