Insurance Securitizations Gain Greater Acceptance As A Capital Management Tool By European Insurers Jan 06
- ID: 1781699
- January 2006
- Region: Europe
- Standard & Poors
The European insurance industry has increasingly been turning to the capital markets as an alternative capital management strategy. During 2005, we saw a number of new types of insurance risks being transferred to the capital markets. Within the European non-life insurance sector, we rated two such transactions, together totaling €452 million. The two transactions – a motor securitization by AXA France IARD and a credit reinsurance securitization by Swiss Reinsurance Co. – were different from other risk transfer transactions we have historically seen. The motivation behind these transactions was a combination of risk transfer and a desire to bring regulatory and rating agency capital requirements in line with the companies' view of economic capital. Increasingly large and sophisticated groups, such...
Companies mentioned in this report are:
- Swiss Reinsurance Co. Ltd.
- AXA France IARD
- Dekania Europe CDO I PLC
- FCC SPARC
- Crystal Credit Ltd.
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