Insurance
Finding certainty in uncertainty
Pension funds need to operate efficiently during periods of long-term uncertainty, so how can they best mitigate their risks? Theo Kocken, chief executive of Cardano, examines two theories by Keynes and Pascal on decision-making during uncertain times
Choose life
The US life settlements sector is marketing itself to pension funds and European insurers as an easy way to add diversification to a portfolio. But how are the risks modelled and how can the banks and hedge funds that are brokering the transactions…
The hybrid split
Insurers’ capital management has relied heavily on hybrid debt over the last decade – a strategy that has come under threat from Ceiops' latest Solvency II proposals. Aaron Woolner reports
Life & Pensions -- New Website Intro
Life & Pensions editor Aaron Woolner introduces readers to the magazine's new online portal.
Pensions puzzle
Senior politicians in Brussels are calling for Solvency II to be extended to incorporate occupational pension schemes. But actuaries and other solvency experts say this would be a disaster for plan sponsors and members. John Ferry reports
Rethinking and revaluing
Many US insurance companies have reported massive losses on the hedging of variable annuity products. European variable annuity providers, however, have faced problems of their own. Matt Cameron reports
Calculation of variable annuity market sensitivities using a pathwise methodology
Under traditional finite difference methods, the calculation of variable annuity sensitivities can involve multiple Monte Carlo simulations, leading to high computational cost. A pathwise approach reduces this dramatically, while providing an unbiased…
On debt row
ALM
By the book
Russia's five-year old third pillar pension system started to expand just as the financial crisis swept across the globe - and a deadly combination of high inflation and low government bond yields leaves the sector facing a risk management conundrum…
Australia gives go ahead to LNG project
Australian federal environment minister Peter Garrett has granted approval for the Gorgan Project, one of the world's biggest liquefied natural gas (LNG) developments.
Opposition to US climate change legislation gathers pace
The American Petroleum Institute (API) has stepped up efforts to dissuade US Senators from passing cap-and-trade legislation in September.
RBS returns to market with NDFA after Keydata collapse
Royal Bank of Scotland (RBS) is launching back into the intermediary market with its new range of structured products after replacing its now insolvent administrator Keydata with NDFA.
Federal Reserve announces extension of Talf
The US Treasury and Federal Reserve confirmed on August 17 that the Term Asset-Backed Securities Loan Facility (Talf) will be extended from its scheduled finish at the end of this year to June 2010. Some market participants have taken the news as a sign…
US regulators told to expand stress-test programme
Daily news headlines
Dynegy announces further losses and asset sale
Wholesale power provider Dynegy has implemented a cost-cutting scheme and plans to sell nine power projects after announcing a $345 million second quarter net loss.
Survey reveals record £96bn deficit for FTSE 100 pension schemes
The financial crisis has plunged the pension schemes of the UK's 100 largest companies into a £96 billion deficit, according to a report by the London-based actuarial consultancy Lane Clark & Peacock (LCP).
MS hires ex-Quantum distribution head for structured products team
Morgan Stanley has appointed Neville Godley as vice president of its retail structured products distribution team in London. In his new role he will report to executive director, Marc Chamberlain.
TAQA to operate Brent system
TAQA Bratani, the UK arm of the Abu Dhabi National Energy Company (TAQA) is the new operator of the North Sea Brent System pipeline and facilities. TAQA acquired the assets from oil major Shell UK, which has owned and operated them since the mid 1970s.