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Business and Economics > Insurance

You are looking at 1 - 10 of 32 items for :

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Cover Global Financial Stability Notes
Private Equity and Life Insurers
Fabio Cortes
,
Mohamed Diaby
, and
Peter Windsor
This Global Financial Stability Note studies the growing trend of private equity (PE) investments into the life insurance industry. PE companies’ investments in life insurers are integral to their strategic growth as PE firms evolve beyond the traditional leveraged buyout transaction to acquire diverse businesses across private credit, structured credit, private real estate funds, and private infrastructure funds. This note reviews the growth in PE investments through the lens of the diverse acquisition incentives and strategies, the consequent changes to asset allocation and investment strategies of the acquired life businesses, and potential prudential and policy implications.
Keywords:
private equity; life insurance; leveraged buyout transaction; private credit; structured credit; private real estate funds; private infrastructure funds; life insurer; private equity company; life insurance insurance company; PE company; IMF Library; Global Financial stability note; Insurance companies; Insurance; Credit; Financial statements; Asset allocation; Global
Cover IMF Staff Country Reports
United Kingdom: Financial Sector Assessment Program-Systemic Stress, and Climate-Related Financial Risks: Implications for Balance Sheet Resilience
International Monetary Fund. Monetary and Capital Markets Department
The FSAP started in an important macro-financial phase right after the second Covid wave and a third lockdown. The balance sheet resilience of major institutional sectors was at the center of policy considerations. Against this backdrop, the FSAP analyzed the pandemic’s potential “scarring” of banks, insurers, corporates, and households balance sheets, focusing on the interplay of macro-financial/structural conditions and financial vulnerabilities.
Keywords:
bank solvency stress test result; fair value; resolvability Assessment framework; D. solvency stress tests result; feedback effect; Macroprudential solvency stress tests; Mortgages; Insurance companies; Stress testing; Insurance; Credit; Global
Cover IMF Staff Country Reports
Belgium: Financial System Stability Assessment-Technical Note-Banking, Insurance, and Financial Conglomerate Supervision
International Monetary Fund. Monetary and Capital Markets Department
This Technical Note analyzes the key aspects of the regulatory and supervisory regime of banks, insurance companies and financial conglomerates (FCs) in Belgium. The regulatory framework for Belgian financial institutions has been strengthened substantially since the 2013 Financial Sector Assessment Program. Notably, new national banking and insurance laws have been issued, the Bank Recovery and Resolution Directive and amendments to Financial Conglomerate Directive have been transposed, Solvency II has been implemented, and the National Bank of Belgium has been designated as the macroprudential authority. This has improved significantly the regulatory framework and broadened its scope to better address the challenges posed by FCs. Financial sector supervision has also been upgraded markedly.
Keywords:
ISCR; CR; risk management; banking group; interest rate; mortgage loan; credit risk; capital ratio; group transaction; Insurance companies; Insurance; Solvency; Credit; Capital adequacy requirements; Global; Europe
Cover IMF Staff Country Reports
Turks and Caicos Islands: Financial Sector Assessment Program - Financial System Stability Assessment
International Monetary Fund. Monetary and Capital Markets Department
This paper discusses key findings and recommendations made in Financial System Stability Assessment for Turks and Caicos Islands. Although the financial oversight framework has significantly improved, the Financial Services Commission (FSC) should strive for further progress. Major advances have been made regarding the operational independence of the FSC and staffing. Nonetheless, the outdated Banking Ordinance and Insurance Ordinance need urgent overhaul. The functioning of the FSC should be strengthened by enhancing Board oversight, filling key positions at Board and senior management levels, strengthening communication and consultation with the industry, and improving the supervision and risk assessment capacities of FSC staff.
Keywords:
ISCR; CR; TCI bank; financial crisis; asset quality; bank distress; U.S. dollar; parent bank distress; financial support; parent-bank funding; bank capital; E. bank resolution; holding company; cash flow; FSC insurance department; Insurance companies; Insurance; Nonperforming loans; Credit; Global; Caribbean; North America
Cover IMF Working Papers
With Great Power Comes Great Responsibility: Macroprudential Tools at Work in Canada
Mr. Ivo Krznar
and
Mr. James Morsink
The goal of this paper is to assess the effectiveness of the policy measures taken by Canadian authorities to address the housing boom. We find that the the last three rounds of macroprudential policies implemented since 2010 were associated with lower mortgage credit growth and house price growth. The international experience suggests that—in addition to tighter loan-to-value limits and shorter amortization periods—lower caps on the debt-to-income ratio and higher risk weights could be effective if the housing boom were to reignite. Over the medium term, the authorities could consider structural measures to further improve the soundness of housing finance.
Keywords:
WP; mortgage; LTV; loan; LTV ratio; housing market; mortgage insurance; macroprudential regulation; risk weight; mortgage credit; housing loan; guarantee cover; Mortgages; Loans; Housing prices; Housing; Credit; Global
Cover IMF Working Papers
Bailouts and Systemic Insurance
Mr. Giovanni Dell'Ariccia
and
Mr. Lev Ratnovski
We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks creates moral hazard—increases bank risk taking. However, when a bank’s success depends on both its effort and the overall stability of the banking system, a government’s commitment to shield banks from contagion may increase their incentives to invest prudently and so reduce bank risk taking. This systemic insurance effect will be relatively more important when bailout rents are low and the risk of contagion (upon a bank failure) is high. The optimal policy may then be not to try to avoid bailouts, but to make them “effective”: associated with lower rents.
Keywords:
WP; financial system; banking system; Bailouts; banking crises; moral hazard; systemic risk; contagion; bank resolution; bank risk taking; bank incentive; bank investment strategies; bank portfolio; bank monitoring; bank capital; bank shareholder; bank owner; Distressed institutions; Commercial banks; Bank credit; Insurance
Cover IMF Staff Country Reports
Israel: Technical Note on Stress Test of the Banking, Insurance and Pension Sectors
International Monetary Fund
A technical note on the stress test of Israel’s banking, insurance, and pension sectors is presented. The Israel Financial Sector Assessment Program Update stress testing exercise comprises a comprehensive analysis of solvency and liquidity risks of key banking and insurance institutions. Satellite models cover housing and corporate credit, household nonhousing credit, profit components, profit retention behavior, and haircut models of government and financial institution bonds. Single-factor tests have been conducted to estimate vulnerabilities to market risk and an idiosyncratic credit shock from exposures to the largest borrower groups and the three largest corporate borrowers.
Keywords:
ISCR; CR; bank; interest rate; credit risk; fair value; short interest; asset return; equity return volatility; market value; risk-adjusted balance sheet framework; risk-adjusted balance sheet; default forecast; BOI interest rate; Stress testing; Financial statements; Insurance companies; Insurance; Credit; Global
Cover IMF Staff Country Reports
Sweden: Financial Sector Assessment Program: Detailed Assessment of Observance of Standards and Codes
International Monetary Fund
This paper discusses key findings of the Detailed Assessment of Observance of Standards and Codes in Sweden. The assessment reveals that the laws and regulations on banking activities and their supervision are in place in Sweden. The composition of the Board of the Swedish Financial Supervisory Authority (FI) is not regulated in law or other ordinances. The position of the FI in relation to other public agencies in possible crisis situations is not defined in law. The FI has also made a motion to the government for a large increase in the number of specialists in its employ.
Keywords:
ISCR; CR; mutual fund; holding company; capital base; clearing member; investment firm; risk management; Insurance; Insurance companies; Securities; Credit; Mutual funds; Global; Europe; Baltics
Cover IMF Staff Country Reports
Sri Lanka: Financial System Stability Assessment: Update, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision and Payment Systems
International Monetary Fund
This paper presents an update to the Financial System Stability Assessment on Sri Lanka. The paper discusses that despite a challenging macroeconomic environment characterized by a high fiscal deficit, inflationary pressures, and a widening current account, near-term risks to the financial system appear manageable. Financial soundness indicators have improved; nonetheless, stress tests suggest that banks remain relatively less resilient to interest rate and liquidity shocks. Moreover, the system faces challenges over the medium term from continued rapid credit growth, rising interest rates, and rigidities in interbank markets.
Keywords:
ISCR; CR; bank; central bank; securities; CBSL; credit risk; bank exposure; interest rate; RTGS security objective; exchange-earning corporate; bank borrowing; exposure to the government; Commercial banks; Insurance companies; Insurance; Credit; Asia and Pacific
Cover IMF Staff Country Reports
Republic Of Latvia: Detailed Assessment Of Anti-Money Laundering And Combating The Financing Of Terrorism
International Monetary Fund
This paper discusses key findings of the Detailed Assessment on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for the Republic of Latvia. The assessment reveals that aspects of Latvia’s financial services market expose it to a high risk of money laundering. There are welcome indications that money laundering risks have been reduced substantially owing to strong preventive measures being implemented by the authorities and financial institutions. The authorities and financial institutions are working to restore the international reputation of the Latvian financial sector.
Keywords:
ISCR; CR; applicable sentence; criminal offence; confiscation of property; paragraph two; AML law; information regarding resource possession; Anti-money laundering and combating the financing of terrorism (AML/CFT); Terrorism financing; Money laundering; Internal controls; Baltics; Europe