Solvency

Credit conditions for European banks are normalising and prospects for the second half of the year look bright. A return to pre-crisis operating income with higher loss absorption buffers accumulated during the crisis will facilitate management of NPLs.

Fitch Ratings has affirmed France’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ’AA’. The Outlook is Negative. The Negative Outlook reflects the shock to the French economy from the COVID-19 pandemic, which will leave public sector indebtedness substantially higher than in previous years.

Emerging markets will invest an estimated 3.9% of GDP (USD 2.2 trillion annually) in infrastructure over next 20 years. There will be strong growth in investment in renewable energy, smart and resilient infrastructure. Emerging Asia will invest an estimated USD 1.7 trillion annually, equal to 4.2% of GDP; China to account for 54% of emerging market spend.

This new risk indicator, based on a concept derived from the classic Sharpe ratio, integrates the already existing range of prudential risk measures into the analysis of the strategic asset allocation process and its optimization.

According to Michèle Lacroix, Head of Group Investment Office at SCOR, for several years, equity exposure has been strongly reduced in the group investment portfolio in contrast to its bank loan exposure...