Magny Øvrebø, CIO Nordea Liv 5th. of September 2012
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New regulatory framework What about Private Equity? Magny Øvrebø, CIO Nordea Liv 5th. of September 2012
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New regulatory framework What about Private Equity?. Magny Øvrebø, CIO Nordea Liv 5th. of September 2012. Nordea Liv Solvency II Impact on asset allocation. Nordea Bank & Nordea Life & Pension. Nordea. Nordea Liv. The Nordic’s leading financial provider. - PowerPoint PPT Presentation
Transcript of Magny Øvrebø, CIO Nordea Liv 5th. of September 2012
New regulatory framework
What about Private Equity?
Magny Øvrebø, CIO Nordea Liv5th. of September 2012
• Nordea Liv
• Solvency II
• Impact on asset allocation
Nordea Bank & Nordea Life & Pension
• Nordea Liv
• Solvency II
• Impact on asset allocation
Solvency II
Common regulatory framework for European insurers
Implementation by 1st of January 2014 or 2015
Goal :
– Ensure sufficient financial resources to meet liabilities
– Capture different risk types
– Ensure sufficient risk focus and control
What’s happening:
– Both asset and liabilities are marked to market.
– Increased focus on risk and control
– Adverse shock test
The required solvency capital will increase.What to do?
Inject more capital
Reduce exposure in guaranteed insurance products
Reduce risk on the asset side
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• Nordea Liv
• Solvency II
• Impact on asset allocation
Solvency II - Bonds & Real Estate
Bonds & money market:
Rating and duration set the shock levels
Real Estate:
Base shock 25%
Solvency II – Quoted equity and Private equity
Quoted equity: Base shock 39%
Private Equity: Base shock 49%
For both Quoted equity and Private Equity there is a symmetric adjustment of +/- 10 percentage points.
Asset Allocation Nordea Life & Pension Nordic
Allocation Private Equity
Thank you!
