Impact on consumer debt; threats and opportunities for European insurers

21 min read 3 Nov 20

Summary: In our paper, Residential mortgages and consumer loans: a new investment avenue for insurers? we focus on the case for investing in European residential mortgages and consumer whole loans, and explore the specific benefits available to insurers making a strategic allocation to the asset class over the long term. 

We also demonstrate how adding residential mortgages to an investment portfolio could help insurers achieve additional portfolio-level diversification benefits and lower the overall solvency capital requirement under the Solvency II standard formula. 

In this video Russell Lee, Head of Insurance Solutions, Jerome Henrion, Director of Private Assets, Fixed Income and Matt Jones, Director, Fixed Income at M&G Investments discuss in more depth, the themes raised in the paper.