S&P Global – EMEA Insurance Outlook, 2024

The report S&P Global's EMEA Insurance Outlook for 2024 highlights the negative impact of rapidly increasing interest rates in 2022 on European insurers and their fixed income investments. These investments experienced devaluation of over €500 billion, resulting in a double-digit negative return on investments. The report estimates that it may take a decade or more for high-quality fixed income investments to recover their value. The report also advises caution regarding illiquid investments such as real estate, private equity, and private debt, which were added by life insurers during the period of low yields. However, the report does not predict any forced selling of assets by insurers due to mass lapses in life insurance or major natural catastrophe events. The report acknowledges that the insurance industry operates slowly but remains resilient during its journey towards recovery.