Some major findings are:
· The reinsurance sector suffered severe insured losses from natural catastrophes in the first half of 2010, but losses in the second half of 2010 were below average. Reinsurers are generally well capitalised. Given the current low reinsurance rates, there could be a focus on M&A activities.
· The pension sector has been less affected by the financial turmoil given the long-term nature of liabilities. For Defined Benefit schemes capital/contributions from sponsors had to be increased in some countries, whereas in others funding conditions were strengthened. Coverage ratios were not directly affected, where fixed discount rates are used. For Defined Contribution schemes the impact of the financial turmoil was greatest for members approaching retirement or for schemes heavily invested in equities.
© EIOPA
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