A Look on the Bright Side of Solvency II (FTfm)

Date Posted: 22 July 2012

“Insurers can mitigate the risk of bank deleveraging [by stepping into the gap]. The problem for insurers is that they don’t have the expertise,” says Massimo Figna, the chief executive of Tenax Capital. Although insurers are hiring former credit specialists from banks, in the meantime Tenax’s products are gathering business, he says.

“We don’t manage to the regulatory regime,” adds Tenax portfolio manager Michael Guy. “We don’t turn up to insurance companies and say ‘we can optimise your balance sheet.”  Instead, he says, “investment strategy should be fundamentally driven but cognisant of the regulatory pressures they face.”

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