UK annuity providers review credit risk strategies

With the implementation of Solvency II now almost certainly delayed for at least two years, UK annuity providers are beginning to reassess their credit asset allocation strategies, as they look to optimise the trade-off between risk and reward. Michael Faulkner reports

During the past few years, insurers have become increasingly frustrated by the slow progress in the development of Solvency II and the lack of certainty about how it may affect their investment strategy.

But with the regime unlikely to be implemented before 2016, their immediate concerns about its potential constraints on their asset allocation have, for the time being, been lifted. With the low yield environment continuing to bite, UK insurers are now examining their high-level investment