Low bond yields trigger consolidation wave in German life insurance
A squeezed bond market may force German life insurers of up to EUR 180 billion in size to change hands over the next five years, according to ratings agency Fitch. Several Nordic asset managers could find new, enterprising business partners within the predicted wave of consolidation.
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German life insurance companies have promised millions of customers returns of up to four percent – a pledge they are now contractually required to fulfill, but which they are increasingly struggling to settle in a low-yield environment.
On Saturday, Martin Præstegaard marks his 100th day as CEO of Denmark’s largest pension fund, ATP. He reflects on his dramatic first few months, where the fund has reported huge losses - but says he is still standing.
Since the first fund to use the EU’s climate benchmark methodologies was launched less than two years ago, the trend has exploded, Morningstar data shows. Most invest in stocks, but Tabula reports increasing interest in bond ETFs despite the tough market.