Real Estate has been in vogue in the insurance industry over the past few years. Given the signs that bond yields could stay low for a long time (or maybe forever?) we believe that this will be the case over the coming years. On the below link you will find some first thoughts regarding possible trends on the real estate market.

UBS Asset Management's experts will share their experience in their corresponding sector with you. You will receive a market outlook, an overview of investment opportunities and future trends.

Tuesday, March 30, 2021
8:30 a.m.-10:30 a.m.

The ongoing low interest rate environment increases the pressure on portfolio returns as well as the correlation between asset classes. Countercyclical behavior and diversification are key factors in this environment to increase risk-adjusted returns. Commodities is an asset class that has such characteristics. Therefore, considering commodities in portfolio allocation can be beneficial. In the following document, we have summarized some considerations about this asset class. For more information, please contact us.

The contribution of the investment return to the overall result of insurance companies remains of great importance. However, the low interest rate environment, high regulatory requirements and increasing complexity require a high degree of efficiency in investment activities. This challenge increasingly raises the question about what should we do ourselves and what can third parties do more efficiently?

The economic downturn triggered by the spread of the coronavirus and the measures taken differs significantly from previous economic crises. The impact on the insurance industry, however, cannot be answered conclusively yet. Nevertheless, under “Find out more" we have recorded some thoughts on the possible impact on insurers. Please feel free to contact us to discuss possible impacts on individual asset classes or to get ideas on possible areas of action for insurance companies.

Since the Fed changed the course of its monetary policy, a normalization of interest rates has become even more distant. Nevertheless, yield targets (.e.g for interest rate guarantees) must be achieved - but how? Considering solvency requirements, private equity, the driver of returns par excellence, loses a large part of its attractiveness. The question arises as to whether this is still up-to-date in the current environment. In Europe, there are already initial efforts to reduce the capital charges for long-term equity investments. Should this development also pick up speed in Switzerland, it is worth looking at the asset class soon. Under “Find our more" we have summarized our thoughts in a booklet. For further information, please contact us.

The negative interest rate environment is likely to continue for a while. How do you deal with it? Which asset classes still generate stable returns in the form of recurring investment income in this environment? These and other questions are explained in the booklet "Recurring Investment Income". Below is a small sample. For more information, please contact us.

The variety of possibilities for the implementation of a sustainability strategy is very broad. Activities range from investing in sustainable companies to financing sustainable projects and setting up charitable foundations. The booklet "Sustainability" shows how you can create a framework for a sustainability concept of your insurance company in just a few steps. Here is a first glimpse:

The high real estate allocation, combined with our capital market expectations for this segment, currently offers a lot of analysis potential. The central questions for us relate to the existing portfolio: How can direct investment be meaningfully diversified? Does a "home bias" pay off? Is the mix between equity and debt and direct and indirect investments right? In the booklet "Real Estate - time for a review?" We answer many questions about real estate. Here is an extract: