The Cerulli Report European Insurance Industry Charting a Successful Path in the New Landscape.

Transcription

1 The Cerulli Report European Insurance Industry 2017 Charting a Successful Path in the New Landscape Overview & Methodology This report, in its fourth iteration, provides analysis of the insurance segment of Europe s institutional investment landscape, from asset managers to gatekeepers, and broad coverage of the end-client. It explores the opportunities and challenges created by Solvency II, and the regional nuances that are necessary to understand to win insurance business. It provides an overview of Solvency II-friendly product development and capital optimization solutions for insurers, and an updated analysis of the implications of Solvency II for insurers and asset managers following its implementation. The report also offers comprehensive insight into the dynamics between insurers and asset managers, and covers the general account assets of insurers in France, the United Kingdom, Germany, Italy, Switzerland, and the Nordics. The report s analysis centers on proprietary research, including over 35 interviews with a range of practitioners, including insurers, captive and independent asset managers (traditional and alternative), regulators, ratings agencies, and industry associations. It features insight from two proprietary surveys, with asset managers representing more than 1.9 trillion (US$2.0 trillion) of European insurance general account assets, and insurers representing more than 952 billion (US$1,004 billion) of European insurance general account assets. Benefits y Review the volume of addressable general account assets by country, and compare the addressability rates by country and type of insurer y Gain insight into how asset managers can deepen their relationships with general account teams, and the types of Solvency II-friendly products and customized solutions offered y Analyze the increasing interaction between life insurers and asset managers, as insurers continue to change their product mix and create business opportunities for managers Questions Answered Subscription details $19,000 Purchase Includes y Digital copy and hardcopy in color y Online access to 3 related reports y Unlimited online firm-wide access y Exhibits in Excel y Key findings y Analyst support y Interactive Report Dashboards NEW y Executive Summary Video NEW For more information, contact us: ``info@cerulli.com Annual 143 PAGES 95 EXHIBITS Research Included with Subscription y Three years of The Cerulli Report European Insurance Industry y What proportion of general account assets do insurers outsource to independent managers, and how does this translate to volumes available both currently and over the next five years? y What are the absolute volumes for unit-linked and general accounts since 2011, and how will these industries grow until 2020? y Which attributes are most important to insurers when looking for external asset managers? y Which distribution strategies should asset managers develop to win more insurance business? cerulli Interactive Report Dashboards NEW Experience Cerulli s digital analytics platform and explore interactive data from this report We are pleased to include these interactive report dashboards with your subscription: 1. European Insurance Market Sizing: Explore growth expectations, compare markets by country, and review AUM by market and business type. 2. What European Insurers Want: Analyze asset managers and insurers reasons for and against outsourcing, attributes for winning mandates, and products to outsource over the next months. Cerulli Associates info@cerulli.com

2 What are Interactive Report Dashboards? As part of your Cerulli report subscription, we are pleased to provide you with Interactive Report Dashboards that allow you to interact with report data in unique ways: ACCESS Access consolidated data from multiple report exhibits in a single comparative view. FILTER DATA Apply filters to Cerulli report analyses including assets under management, net new flows, product type, channel, year, marketplace, and currency. EXPORT Easily build and export custom charts. Export options include; Excel, PDF, or image file. My Account: Joe Q. Sample How to Access Interactive Report Dashboards This service is complimentary and is accessible through our website. Use your unqiue Cerulli website login credentials, and you will find a View Interactive Report Dashboards link to this platform under My Reports. Interact View Dashboard You can also jump to related Interactive Report Dashboards in the report PDF by clicking on the Interact button shown on the left for reference. USER LOGIN To obtain online access, please visit or contact our account management team at: ``info@cerulli.com ` ` CERULLI ASSOCIATES info@cerulli.com

3 Outsourcing 01 Exhibit 1.04 Asset Managers Views on the Main Drivers for European Insurance Companies Outsourcing More Assets, 2017 Source: Cerulli Associates Analyst Note: Asset managers were able to select more than one option. Other includes Accessing more specialist asset classes in a hunt for yield that cannot be done in-house and requires a good external asset manager and Situation dependent most of the other points can also apply. Insurers exploring new asset classes where it is more efficient to outsource 78.6% Insurers lack of internal investment resources 71.4% Increasing investment management complexity 64.3% Lower cost of outsourcing versus building in-house expertise 57.1% A smaller investment portfolio makes it more efficient to outsource 35.7% Asset managers understand insurance investments and regulations 28.6% Insurers want to better understand risks within their investment portfolio 21.4% Other 14.3% 0% 20% 40% 60% 80% 100% Cerulli s survey of European insurers found that asset managers lack of understanding of insurers needs is the most important factor that prevents insurers from outsourcing and forces them to manage more assets internally. The desire to see through to the underlying holdings, the need for data transparency, and the desire to preserve control can also prevent insurers from outsourcing to external asset managers (see Exhibit 1.05). The Cerulli Report European Insurance Industry

4 Table of Contents Table of Contents: Expanded Key Questions Answered What are the most significant obstacles facing asset managers under the current European regulations? What are the key qualities that European insurers are looking for in asset managers? Which markets in Europe offer third-party asset managers the most outsourcing opportunities? Which products offer asset managers the best chance of winning insurance business? Where are German insurers allocating their assets? To what extent are Swiss insurers being affected by the Europe-wide trend for consolidation? Chapter 1: Outsourcing...20 Exhibit Asset Managers Views on the Addressability of Total European General Account Insurance Assets for Third-Party Managers by Market, Exhibit Asset Managers Expectations Around Insourcing and Outsourcing in the European Insurance Industry, Exhibit Insurers Views on the Main Drivers for Increasing Outsourcing to External Asset Managers, Exhibit Asset Managers Views on the Main Drivers for European Insurance Companies Outsourcing More Assets, Exhibit Factors Preventing Insurers from Outsourcing More to Asset Managers, Exhibit Asset Managers Views on the Main Drivers for European Insurance Companies Insourcing/Taking Back Assets, Exhibit Insurers Expected Changes in the Fixed-Income Portion of the Investment Portfolio Over the Next Months, Exhibit Asset Managers Views on European Insurance Companies Demand for Selected Products Over the Next Months, Exhibit Asset Classes That Insurers Are Most Likely to Outsource to a Third-Party Manager Over the Next 12 Months, Exhibit Asset Managers Views on the Main Drivers of European Insurance Companies Demand for Selected Products Over the Next Months, Exhibit Asset Managers Development of New Capabilities to Cope with Outsourced Opportunities from Insurance Companies in Response to Solvency II, Chapter 2: Product Development...29 Exhibit The Most Significant Challenges for Insurers With Regard to Pillar III Under Solvency II, Exhibit Insurers Expectations with Regard to Meeting Pillar I Requirements Under Solvency II Over the Next Months, Exhibit Pillar I Diversified Market Solvency Capital Requirements (SCR) Breakdown by International Model, Partial Internal Model, and Standard Formula Firms, Exhibit Insurers Anticipated Changes in Relation to Solvency II Over the Next Months, The Cerulli Report European Insurance Industry

5 Table of Contents Exhibit Services Expected to See the Most Demand from European Insurers Over the Next Months, Exhibit Capital Optimization Tools/Strategies Used by Insurers, Exhibit Asset Managers Views on the Key Challenges When Developing Products for Insurance Companies, Exhibit Asset Managers Views on the Most Significant Challenges in Terms of Providing Reporting and Transparency to Insurers Under Solvency II, Exhibit Asset Managers Anticipated Changes in Operational Plans to Provide Data Solutions Required Under Solvency II, Exhibit Asset Classes Approved for Inclusion in Insurers Matching Adjustment Portfolios, Chapter 3: Selling to Insurers Exhibit Asset Managers Priorities When Developing a Marketing Strategy for European Insurers Over the Next Months, Exhibit Insurers Views on the Most Important Attributes When Selecting a Third-Party Asset Manager, Exhibit Importance of Key Attributes for Winning Mandates Direct from European Insurance Companies, Exhibit Insurers Views on the Most Significant Challenges for Investing Their Firms General Account Assets in the Current Environment, Exhibit Asset Managers Plans to Increase Insurance Investment Strategies Sales Efforts by Market, Exhibit Asset Managers Efforts to Increase European Insurance Business Presence Over the Next Months by Market, Exhibit Asset Managers European Insurance Business Presence by Market, Exhibit Most Important Channel for Asset Managers Distributing Insurance Products Over the Next Months, Exhibit Insurers Views on the Management of Guaranteed Funds Business Under Solvency II, Chapter 4: Overview...44 Exhibit European Insurance Assets Under Management by Business Type, Exhibit European Insurance Assets Under Management by Country, Exhibit Unit-Linked Assets Expressed as Percentage of Total Life Insurance Assets by Country, Exhibit European Total Insurance Assets Under Management Forecast, 2016E 2020E...50 Exhibit European General Account Insurance Assets Addressable to Third-Party Asset Managers, Exhibit Main Drivers of European Insurance Companies Demand for Selected Fixed-Income Products Over the Next Months, Exhibit Ex-North America Domiciled Non-Affiliated Asset Managers by General Account Assets, Exhibit European Gross Written Premiums by Business Type for Selected Markets, Exhibit Guarantee Rates and Guaranteed Life Insurance Products in Selected European Countries, Exhibit Duration of Fixed-Income Assets Reported by Stress-Test Participants, Exhibit European Life and Non-Life Insurance Solvency Ratios for Selected Markets, The Cerulli Report European Insurance Industry 2017

6 Table of Contents Chapter 5: United Kingdom...62 Exhibit U.K. General Account Insurance Assets Under Management by Business Type, Exhibit U.K. Long-Term and General Insurance Asset Allocation Breakdown, Exhibit U.K. Gross Written Premiums by Business Type, Exhibit Gross Written Premium Forecast in the U.K. by Insurance Type, E...68 Exhibit Largest 20 U.K. General Insurance Companies by Gross Written Premiums, Exhibit U.K. Solvency II Applications for Matching Adjustment, Volatility Adjustment, and Transitional Measures, Exhibit Top 10 U.K. Insurers by Current Allocation to Real Estate, Exhibit Solvency Measures Used in Balance Sheets by U.K. Insurance Companies, Chapter 6: Germany Exhibit German General Account Insurance Assets Under Management by Business Type, Exhibit German Insurance Asset Allocation Breakdown by Business Type, Exhibit German Life Insurers Fixed-Income Portfolio Credit Rating Distribution, Exhibit German Insurers Allocations to Investment Funds by Fund Structure, Exhibit German Insurers Allocations to Property Investments, Exhibit Top 10 German Insurers by Current Allocation to Real Estate, Exhibit German Gross Written Premiums by Business Type, Exhibit Largest 10 German Life Insurance Companies by Gross Written Premiums, Exhibit Largest 10 German Property and Casualty Insurance Companies by Gross Written Premiums, Exhibit Number of German Insurance Companies Under Federal Supervision by Business Type, Chapter 7: France...89 Exhibit French General Account Insurance Assets Under Management by Business Type, Exhibit French General Acount Insurance Asset Allocation Breakdown, Exhibit French Gross Written Premiums by Business Type, Exhibit Number of French Insurance Companies by Business Type, Exhibit Estimated Net Inflows to General Account and Unit-Linked Insurance, Exhibit French Insurers Solvency II Ratios by Business Type, Exhibit Top 10 French Insurers by Current Allocation to Real Estate, Exhibit Largest French Insurance Companies, The Cerulli Report European Insurance Industry

7 Table of Contents Chapter 8: Switzerland Exhibit Swiss General Account Insurance Assets Under Management by Business Type, Exhibit Swiss General Account Insurance Asset Allocation Breakdown by Business Type, Exhibit General Account Insurance Asset Allocation Breakdown for Largest Swiss Life Companies, Exhibit General Account Insurance Asset Allocation Breakdown for Largest Swiss Non-Life Companies, Exhibit Largest Five Swiss Life and Non-Life Insurance Companies by Direct Business Marketshare, Exhibit Estimated Outsourcing of Selected Swiss Insurance Companies, Exhibit Swiss Gross Written Premiums by Business Type, Exhibit Number of Swiss Insurance Companies by Business Type, Exhibit Returns on Swiss Insurers Investment by Business Type, Chapter 9: The Nordics Exhibit Swedish General Account Insurance Assets Under Management by Business Type, Q Exhibit Swedish Insurance Asset Allocation Breakdown by Business Type, Q Exhibit Swedish Gross Written Premiums by Business Type, Q Exhibit Largest 10 Swedish Life Insurance Companies Marketshare by Gross Written Premiums, Q Exhibit Danish General Account Insurance Assets Under Management by Business Type, Exhibit Danish Insurance Asset Allocation Breakdown by Business Type, Exhibit Finnish General Account Insurance Assets Under Management by Business Type, Exhibit Top Five Finnish Employee Pension Insurance Companies Asset Allocation Breakdown, Exhibit Finnish Gross Written Premiums by Business Type, Exhibit Norwegian General Account Insurance Assets Under Management by Business Type, Q Exhibit Norwegian Insurance Asset Allocation Breakdown by Business Type, Q Chapter 10: Italy Exhibit Italian General Account Insurance Assets Under Management by Business Type, Exhibit Italian General Insurance Asset Allocation Breakdown, Exhibit Italian General Account Insurers Allocation to Debt Securities, Exhibit Italian Gross Written Premiums by Business Type, Exhibit Italian Insurers Solvency Ratios by Business Type, Exhibit Return on Segregated Funds/With-Profits Life Policies, Exhibit Largest Five Italian Life Insurance Companies by Gross Written Premiums, Exhibit Largest Five Italian Non-Life Insurance Companies by Gross Written Premiums, The Cerulli Report European Insurance Industry 2017

8 Index of Companies Index of Companies Aberdeen Asset Management Aegon...64 AFA Albourne Partners... 20, 115, 124 Alecta Allianz...12, 22, 58, 76, 77, 86, 87, 88, 94, 102, 106, 109, 140 AMF Amlin...69 Amundi... 38, 43, 44, 90 Assekurata...79 Aviva... 12, 64, 69 AXA...12, 22, 32, 76, 96, 108, 109, 111 Baloise Barmenia...84 Basler... 12, 107, 109 BlackRock... 38, 111, 125 BNP Paribas... 50, 81 Brummer & Partners Bupa...66 CBRE Group Cinven...88 CNP Assurances... 54, 58, 100 Columbia Threadneedle Investments...37 Crédit Agricole... 43, 90 Deutsche... 38, 80, 103 DNB Liv EDHEC Business School... 40, 75 Elo... 50, 115 EQT Ergo...77 Etera EY Fitch Ratings...40, 61, 85, 87, 111 The Cerulli Report European Insurance Industry

9 Index of Companies Folksam , 121 Friends Life...64 Generali... 58, 76, 86, 94, 133, 139, 140 German Medical Insurance...84 GLL Real Estate Partners Goldman...38 Gothaer Group...81 Groupama...54 Heidelberger Leben...88 Helvetia... 12, 21, 102, 107, 109, 111 HSBC...73 HUK Coburg...84 If Ilmarinen... 20, 115, 125 Intesa Sanpaolo Invesco...41 JP Morgan...38 KLP KPMG... 30, 35 La Banque Postale...58 La Française Global Investment Solutions... 33, 90 Länsförsäkringar , 121 Legal & General... 12, 63, 64 Lend Lease Real Estate Investments Liverpool Victoria...69 Mayfair Capital Investment Management MEAG...76 Mitsui Sumitomo Insurance...69 Moderna Försäkringar Moody s... 40, 62 Morningstar , 120 Munich Re...77 NFU Mutual...73 NN Group Nordea...115, 119, 121 Oasis...66 Partnership Assurance The Cerulli Report European Insurance Industry 2017

10 Index of Companies Pax Anlage PFA Pohjola Poste Vita Prudential...64 PwC REI Germany Cross Docks Schroders...38 Schweizerische Mobiliar SEB...115, 120, 121 Serena Properties Skandia , 120 Società Reale Mutua di Assicurazioni Société Générale... 39, 41, 42 SOGECAP...98 SPP Standard Life...64 Storebrand Suravenir...98 Swiss Life...12, 101, 102, 106, 107, 109, 111 Swiss Re... 21, 85, 101, 102, 111, 112 Trygg Hansa UBS... 73, 139 UnipolSai , 140 Uniqa Varma...20, 50, 115, 125 Vaudoise... 21, 101 Versicherungskammer Bayern...84 Wellington...38 Zurich... 21, 69, 101, 102, 108, 111 The Cerulli Report European Insurance Industry