Cash-rich insurers eye loan books of de-leveraging European banks

High-quality portfolios could provide attractive long-duration assets, say bankers

The de-leveraging of European banks will provide opportunities for insurers to buy assets, but the market is likely to develop slowly, bankers say.

Europe’s banks are set to dramatically shrink their balance sheets in the coming years as they look to raise capital and plug the holes created by the eurozone debt crisis. KPMG suggests that about €1.5 trillion–2.5 trillion (£1.2 trillion–2 trillion) of bank de-leveraging is required over the next two years.

Bankers say assets such as higher-quality