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.
LASSE SOLL LUNDE
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.
The Danish defense industry has encouraged pension funds in the country to look more positively at investments in weapons. ”We would like it to be considered ordinary societal responsibility,” says an industry leader.
Net inflows have exceeded expectations at BankInvest in Q1. The EUR 20bn manager has been criticized for some of the investments in its sustainable flagship product, but CEO Lars Bo Bertram is proud that the EUR 12bn fund has managed to beat its benchmark despite massive gains for oil and gas.