Somewhere , deep into an examination of how insurance companies operate in the US and to a degree in Europe and hence the UK, is this paragraph
All that said, we can see why regulators and worrywart investors are taking a closer look at the whole nexus. And only time will tell as to how the mix of private credit, CLOs and offshore reinsurance delivers for PE-linked insurers the next time there is a downturn in the credit cycle, or some exogenous event that causes a jump in policy cancellations — and in the process testing the assumption that illiquidity is fine and dandy.
This is the new type of journalism brought to us by the bright-eyed Nangle. It makes us read stuff we would not ever read, because we love the words, the sentence structures and finally the big ideas that are carried by microscopic study of data. This is good stuff, I spent 45 minutes this morning making my way through Toby’s Alphaville piece only to find that better minds than mine had been there before.
Here is Luke Webster
And Toby on his own work
This is not easy and requires a weekend worth of time to understand. Goodness knows how long it took the man to put this together and how important it is that those of us who work in this part of the life and pensions industry know what is going on.
But Nangle’s research and what he has found is worrying people I associate with and I thank them for making their positions clear
Of course I am a pensioner and don’t work for an insurer, there is a misalignment of reward – the pensioner should be rewarded more, the insurer less.
Let’s let Edi have the last say and then ask him to stop being brilliant as he recovers from a chest infection.
