The ongoing coronavirus is extracting a heavy toll on financial markets and investors’ psychological well-being. Much of the focus of headlines has been on the gut-wrenching losses in major global stock and commodity markets, disorienting spikes in equity volatility and plunges in treasury yields. But the shaky foundations of the USD 72 trillion global corporate debt market ... Continue Reading »
solvency
Climate Change Has Claimed Its Biggest Corporate Victim; Now Banks Are on Alert
Rob Bailey, Director of Climate Resilience at Marsh & McLennan Insights Contact When PG&E filed for Chapter 11 protection in January, The Wall Street Journal dubbed it the "first climate change bankruptcy." The California power utility was facing USD 30 billion in potential liabilities following a series of devastating wildfires linked to its equipment -- ... Continue Reading »
Pushing the Model Boundaries – GC@BB Commentary
Andrew Cox, Managing Director, GC Strategic Advisory; Eddy Vanbeneden, Managing Director, Head of GC Analytics, Continental Europe; Till Wagner, Senior Vice President, GC Strategic Advisory Contact Companies keen to expand internal capital model remit Multiple factors hindering ability to integrate into broader strategic framework New technologies support rapid model ... Continue Reading »
Managing Catastrophe Model Change
Imelda Powers, Senior Cat Management Advisor, Asia Pacific, Global Strategic Advisory Contact Incorporating new hazard and claims insights can improve the estimates derived from catastrophe models. By re-analyzing historical events using the latest scientific methods or refining claims with more granular geographical and line of business breakdowns, we can update models with ... Continue Reading »
Managing Volatility Key To Solvency II Transition: Part II
Eric Paire, Head of Global Partners & Strategic Advisory, EMEA Contact "To remain competitive, smaller companies simply cannot afford to operate at 200 percent. This volatility on multiple fronts means that establishing the solvency level that will provide a sufficiently robust capital buffer to withstand these fluctuations is extremely difficult. Is it 130 percent, 150 ... Continue Reading »
Managing Volatility Key To Solvency II Transition: Part I
Eric Paire, Head of Global Partners & Strategic Advisory, EMEA Contact Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & ... Continue Reading »
Chart: Solvency II Ratios as of End of H1 2016
Chart presents (re)insurers' Solvency II ratios compiled by Guy Carpenter for the first half of 2016. Many companies publish their solvency ratios without being required to do so, and some others actually specify target solvency ratio ranges as part of their risk appetite and financial targets. Solvency ratios are another metric for investors to use when assessing the relative ... Continue Reading »
Reserving and Capital Setting: The Crystalization of Emerging Risks, Part I
As discussed in the Executive Summary of this report, the term “crystalization of risk” refers to the timescale over which we realize that the risk is manifesting itself and how this view changes until ultimate understanding of quantum is reached and all liabilities are discharged. The “Reserving Risks” section in last year’s report, Ahead of the Curve: Understanding Emerging ... Continue Reading »
Managing Volatility Key To Solvency II Transition – GC@MC Commentary
Eric Paire, Head of Global Partners & Strategic Advisory, EMEA Contact Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & ... Continue Reading »
Changes to Best’s Capital Adequacy Ratio (BCAR)
Here we review recent GC Capital Ideas posts on developing changes to Best's Capital Adequacy Ratio (BCAR) and the potential impact of those changes on (re)insurers. ... Continue Reading »
