4 ms·
Actually key parts of Solvency II (Matching Adjustment - drafted by the U.K.) specifically favours corporate debt over government bonds which is in part why act
by klelatti 4y ago
Actually key parts of Solvency II (Matching Adjustment - drafted by the U.K.) specifically favours corporate debt over government bonds which is in part why actually U.K. insurers don’t hold much government debt at all. Really odd that you should get this so wrong.
- skippyboxedhero 4y agoThis isn't the case. Solvency II treats govt bonds as essentially risk-free, corporate bonds are not treated as risk-free, and there are substantial capital requirements for non-bond investments. UK insurers have substantial holdings of govt debt (really odd that you should get this so wrong), they are one of the largest non-govt investors in the market (obviously).
- klelatti 4y agoWhat return can insurers assume under the MA and how does that compare to government bonds?