10/12/2009
By Sophie Baker
The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has published its second bi-annual report on the financial conditions and financial stability of the insurance and occupational fund sector in Europe.
The report, which covers developments in the (re)insurance and occupational pension fund markets from 2007 to 2008, found that the performance of most insurance undertakings for 2008 was below that of 2007. This, CEIOPS said, was due to low investment yields and flat or decreased premium income with deteriorating solvency positions.
An outlook for 2009 and beyond are also included, showing that a number of risks and challenges continue going forward, with financial risks the most prevalent.
Financial turmoil was also found to have affected Institutions for Occupational Retirement Provisions (IORPs) in their role as institutional investors. However, the impact has not been as severe in this area as it has in other sectors, as the long-term nature of the liabilities allows for some protection, and IORPs have not experienced liquidity problems seen elsewhere.
