View more on these topics

FSA stress tests life offices

The FSA subjected life assurance companies to stress tests earlier this year in order to judge the level of resilience of their capital bases, according to press reports.

The tests reviewed insurers’ resilience if equity values declined 20 per cent over 2009, as well as a 15 per cent drop in property values, a 0.5 per cent increase in yields on corporate bonds and a 0.5 increase or decline in interest rates.

The stress tests were designed to simulate a 1980’s-style ‘V’ recession scenario, which is considered a downtown “with a reasonably rapid recovery.”

Although most markets have performed better than the life assurance tests so far this year, most of the data was collected in early March, about the same time as the FTSE 100 saw a decline of 23 per cent for the year, according to Bloomberg data reported in the Financial Times.

Recommended

1

MPAA consultation

By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Nothing to worry about then?
    The FSA has given the all clear, so when will the first one fall over?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com