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Could equity investments beckon for insurers?

Regulatory changes leading to reduced costs for equity investments by insurers could mean changes to insurer’s investment portfolios. Vincent Huck considers if this may provide relief to potential coronavirus losses, despite political arguments over solvency regulations.

Financial results for Q1 2020 have been flooding in over the last month, and as expected it doesn’t look good for insurers. Few investment results are virus-free: solvency ratios and profitability are under stress. 

Due to insurer’s generally high-quality investments in the credit space, that side of the portfolio remains in good shape, for now.