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Poor asset returns threaten EU insurers’ profitability
Life insurers report median zero investment return in 2018
Returns on investments by European Union life insurers cratered in 2018, with the median firm reporting a 0% return, compared with 3.1% in 2017.
Data from the European Insurance and Occupational Pensions Authority (Eiopa) shows that the collapse was caused by a fall in the prices of government and corporate bonds, equities and funds.
Bonds made up 39.7% of EU life insurers’ portfolios as of Q4 2018, unchanged on the year prior. Funds made up a 38.2% share, up from 37.3% on Q4 2017 and
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