Investment Institute
Sostenibilidad

La crisis de Ucrania y su impacto en las aseguradoras


Key points

  • The Ukraine crisis has significantly impacted the financial and macroeconomic backdrop and adds to the already heavy burden on insurers
  • Inflationary pressures are a drag on profitability and disturb balance sheets. Inflation risk should be factored into asset liability management and investment strategies. Close attention should be paid to duration gaps
  • Insurance losses related to the war should be manageable for insurers, but the general uncertainty, volatility and risks tilted to the downside call for more insurance and agility in asset portfolios
  • The war’s interference with climate action plans does not mitigate against physical and transitional risks. This calls for an acceleration in climate risk integration, both in liabilities and assets. The crisis will likely not slow the regulatory process underway, and insurers must be ready to manage these risks

War in Ukraine is adding to the burden

Insurers already had a heavy agenda to contend with at the start of 2022 – not least an expected change in economic and financial regimes and some significant regulatory developments underway.

Lingering COVID-19-related supply-side disruptions, alongside a significant rebound in consumer demand, were already producing supply bottlenecks and an inflation rate not seen for decades. At that time our central scenario was for a gradual absorption of the pandemic shock and of a normalisation of global supply chains, allowing for sustained growth, a slowdown in inflation and a digestible pace of monetary policy normalisation.

That said, the uncertainty around inflation, interest rates and the potential for more volatility already called for more prudence and for bringing more resilience in insurance balance sheets and asset portfolios.1

The Ukraine crisis jolted investors and continues to have major implications for the global economy and financial markets, especially in Europe. Volatility has surged, equity markets have sold off and credit spreads have widened especially for corporates with direct or indirect exposure to Russia. Europe is heavily dependent on Russia for its oil and gas which has further fuelled the environment of rising inflation. Exhibit 1 shows that rising pressures have pushed up inflation expectations further.

  • Tm8gaW1tZWRpYXRlIHN0b3JtIGFoZWFkIGJ1dCBpbnN1cmVycyBzaG91bGQgdXNlIHRoZSBsdWxsIHRvIGJ1aWxkIHBvcnRmb2xpbyByZXNpbGllbmNlIOKAkyBBWEEgSU0g4oCTIEphbnVhcnkgMjAyMg==
Exhibit 1: 5 year / 5 year forward inflation swaps – Euro vs. US
Source: Bloomberg – AXA IM

When the war broke out, the flight to quality was brief, and market participants quickly priced in further significant interest rates hikes, comforted by a more hawkish stance from central banks, which significantly impacted bond portfolios. High inflation hurts real incomes, dampens consumers’ confidence, and continues to feed concerns about the extent of monetary tightening and growth implications.

The job market is in good shape, corporate financing conditions remain affordable, and we continue to see earnings growth, but uncertainty is increasing. Supply chain disruptions, especially with new restrictions in China as a response to a resurgence of COVID-19, and geopolitics should impact GDP growth. This, combined with a high degree of uncertainty on the inflation trend and the pace of monetary tightening, should also translate into more frequent episodes of volatility in financial markets.

There is much talk around ‘stagflation’ – when slowing economies see rising prices – and while we do not see any market crash or credit crunch for now, our call to strengthen asset and liability management and build insurance portfolio resilience is even more valid than three months ago.

Lea el artículo completo
Descargar el artículo (655.1 KB)
Investment Institute

Obtenga información exclusiva de nuestros expertos

Visite el investment Institute

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date.

    All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document.

    Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.

    Advertencia sobre riesgos

    El valor de las inversiones y las rentas derivadas de ellas pueden disminuir o aumentar y es posible que los inversores no recuperen la cantidad invertida originalmente.

    Volver arriba
    Clientes Profesionales

    El sitio web de AXA INVESTMENT MANAGERS Paris Sucursal en España está destinado exclusivamente a clientes profesionales tal y como son Definidos en la Directiva 2014/65/EU (directiva sobre Mercados de Instrumentos financieros) y en los artículos 194 y 196 de la Ley 6/2023, de 17 de marzo, de los Mercados de Valores y de los Servicios de Inversión. Para una mayor información sobre la disponibilidad de los fondos AXA IM, por favor consulte con su asesor financiero o diríjase a la página web de la CNMV www.cnmv.es

    Por la presente confirmo que soy un inversor profesional en el sentido de la legislación aplicable.

    Entiendo que la información proporcionada tiene únicamente fines informativos y no constituye una solicitud ni un asesoramiento de inversión.

    Confirmo que poseo los conocimientos, experiencia y aptitudes necesarios en materia de inversión, y que comprendo los riesgos asociados a los productos de inversión, tal como se definen en las normas aplicables en mi jurisdicción.