Insurance Asset Risk EMEA 2023

Welcome address

PANEL DISCUSSION: Global macro drivers, risks and outcomes on the horizon for 2023 and beyond

• Where are we in the inflation journey?
• Are higher interest rates and inflation here to stay and what can we expect the new 'normal' level of inflation to be?
• Central bank intervention – What tools are still at the central banks' disposal and what measures can we expect from them going forward? Can we expect the tightening measure to end any time soon?
• What global consequences will we face as a result of recent policy maker action?
• Treading the tightrope – can the central banks tame inflation without plunging the economy into further turmoil?
• Do the signs indicate that recession is a real possibility?
• To what extent has the covid wave been protecting us from the recession that we have been forecasting?
• Continued geopolitical volatility and uncertainty – key considerations and potential implications for the markets

Moderator:
Andrew Stoker, Chief Financial Officer, Rothesay Life

Panellists:
Arnab Das, Global Macro Strategist, Invesco
Charlotte Mueller, Chief Economist Europe, Swiss Re
Corrado Pistarino, Chief Investment Officer, Foresters Friendly
Patrick Tuijp, Team Leader Client Servicing Scenarios and Asset Valuation, Ortec Finance

KEYNOTE ADDRESS: IDENTIFYING THE RISKS OF RISING GLOBAL GEOPOLITICAL INSTABILITY

• Russia's War Against Ukraine
• Growing confrontation with China
• The emergence of a counter West
• The risks of global political and economic fragmentation

Keynote Speaker:
Dr. Neil Melvin, Director International Security Services, Royal United Services Institute

PRESENTATION: MOVING FORWARD - DESIGNING A CLIMATE AWARE STRATEGIC ASSET ALLOCATION

We believe that legacy business practices must be overhauled to reflect climate risk and opportunities.
In this session we will discuss our 3 pillars framework for climate aware Strategic Asset Allocation

• How to incorporate climate into capital market assumption
• Demonstrate how to optimize the process to address climate objectives
• Consider how to implement the desired allocations

Speaker:
Tim Antonelli, Insurance Strategist, Wellington Management

PANEL DISCUSSION: Investment leaders strategic outlook: pre-empting risk and navigating unchartered waters

• Key concerns on the watchlist of a CIO? Any wildcards on the horizon?
• Which asset classes are on your radar and why?
• What potential disruptors around financial markets and the way people invest going forward can we envisage?
• Can the financial system stay as it is?
• Company strategy - will you be looking to widen the value chain or do you remain focussed on insurance?
• ESG expectations & the challenge of fulfilling multiple commitments.
• How are you balancing the increasing pressure (both regulatory and reputationally) to meet ESG demands with your fiduciary responsibilities as an insurer. Can it be done and at what cost?
• To what extent have the additional challenges and complexities with the Russia/Ukraine crisis detracted from the focus on ESG goals?

Moderator:
Moiz Khan, Head of Investment Solutions, EMEA, RGA

Panellists:
Amaury Boyenval, Head of AXA Solutions, AXA IM Core Investments
Adam Ruddle, Chief Investment Officer, LV=
Ashish Dafria, Chief Investment Officer, Aviva UK Life

PRESENTATION: HOW TECHNOLOGY CAN HELP INSURERS ADAPT TO A LOW-LIQUIDITY WORLD

We will look at tools and technology that can help to trade fixed-income securities more efficiently. "Liquidity pools," or markets that provide liquidity for credit-related fixed-income securities, have been highly fragmented across multiple market sources. Technology that rapidly presents a more complete market picture can quickly identify the best sources of liquidity.

Speaker:

Vivek Bommi, Head of European Fixed Income, Alliance Bernstein

PANEL DISCUSSION: Unprecedented rate rises and a paradigm shift in the markets – what are the implications for asset allocation?

• Financial instability brought on by rising rates
• Is the new rate environment a temporary change or a landmark scenario change? If so, what are the long-term implications for the business and how should asset owners adjust?
• After a prolonged period of benign conditions and low rates, how are insurers now reassessing their asset strategy?
• What consequences does the high-rate environment have for the portfolio?
• How relevant is our previous asset allocation strategy in the new world?
• Which asset classes are rising up in favour as a result?
• Are alternative assets still a key focus when it comes to asset allocation? Or with rising interest rates and more favourable bond yields, can we expect a reversal in the recent surge into illiquids?
• How have motivations and drivers vis a vis illiquid assets shifted in the new financial environment?
• Picking a credit strategy - what is the right approach given the unique and ever- changing market dynamics?
• What opportunities does the new rate environment bring?

Moderator:
Antonello Aquino, Co-head EMEA Insurance & Africa Banking, Moody's

Panellists:
Mike Eakins, Chief Investment Officer and Group Executive Committee Member, Phoenix Group
Lesley-Ann Morgan, Head of Multi-Asset Strategy and CEO of Schroder Unit Trusts Limited, Schroders
Christian Wegener, Global Head of Investment Solutions, Group Insurance, HSBC

PANEL DISCUSSION: Is regulation doing enough to address investment opportunity shortages and challenges

• What will prove to be the most significant regulatory development for the insurance market and the insurance investment teams?
• Europe's SII review – an update on progress
• where can we expect adjustments to be made and what implications can we anticipate?
• Outlook for UK investment conditions – How do insurers view UK investment opportunities vs overseas opportunities?
• Future role of the UK in the global financial markets and what role can regulation play?
• As the only G7 economy forecast to shrink in 2023, can the UK remain competitive and maintain its place in the global financial markets? Is the right regulation in place to support this?
• What can we expect from the UK SII reforms and to what extent will this act broaden UK investment opportunities?
• Which asset classes will be opened up as a result and could this be a significant enough game changer?
• ESG initiatives
• What do we as an industry want from additional regulatory frameworks?
• How do we challenge regulators to make sure that reporting requirements and demands are going to be helpful in the transition to green?
• Could the development of international sustainability reporting standards by the International Sustainability Standards Board (ISSB) be the game changer we have been waiting for?

Moderator:
Mark Saunders, Director, Risk Solutions, Conning

Panellists:
Anisha Gangwani, Head of Investment Business Development, Legal and General Retirement
David Otudeko, Assistant Director, Head of Prudential Regulation, Association of British Insurers (ABI)
Liz Cain, Head of Debt Origination, Pension Insurance Corporation

PRESENTATION: PRIVATE CREDIT: AN ALL-WEATHER ASSET CLASS

Demand for private credit in various forms has exploded over the last decade. We believe this market—now nearly $1.8 trillion in assets—will continue to present attractive opportunities for investors. While we believe the outlook for private credit remains bright, both in absolute terms and relative to other fixed-income subsectors, uncertainty remains elevated and economic headwinds persist: inflationary pressure, higher interest rates for longer, and geopolitical turmoil.

In this session we will evaluate the market's vast and rich opportunity set, across an array of subsectors, and explore a few themes that are key considerations when building a well-rounded private-credit portfolio with diversified exposures and return streams.

Speaker:
Manuel Kalbreier, Head of Alternative Specialists, EMEA Institutional, Neuberger Berman

PANEL DISCUSSION: Revisiting liquidity risk management

• What lessons have we learned from the LDI liquidity crisis?
• What implications has this had for insurers?
• How are insurers reviewing their liquidity risk practices?
• Bringing liquidity risk management to the fore -do we need to rethink structure and tools?
• Fund level liquidity risk management
• How can insurers better anticipate and prepare for future potential cash spikes?
• Given the increased expansion into illiquid assets, are current risk monitoring tools and approaches still adequate and appropriate?
• Illiquid asset valuation uncertainty risk - to what extent are insurers able to understand and quantify the illiquidity premium in their portfolios?
• How much private assets is the right amount? What role are they playing?
• What additional scrutiny can we expect from regulators going forward?
• Liquidity solutions - where are the sources of additional liquidity?

Moderator:
Erik Vynckier, Board Member, Foresters Friendly Society

Panellists:
Rakesh Girdharlal, FIA Head of Liquidity and Liability Driven Investment, and Senior Portfolio Manager, Aviva Investors
Konstantinos Stergiou, Head of Financial Risk, Axa UK
Lauri Saraste, Director, Development, Regulation and ESG, LocalTapiola Group
Andrew Bailey, Director of Financial Risk, Just Group

PANEL DISCUSSION: ESG – Beyond the pledges, what does action look like? What is it going to take to turn pledges to reality?

• Have we overpromised and what is the risk of under delivering?
• Where are investors best advised to focus their efforts in order to accelerate the transition to a low carbon economy?
• How should we be capturing/ measuring value regarding ESG goals? What costs are we willing to incur to get that value that isn't captured by metrics?
• Where are we in terms of being able to deliver on short term targets? How do we stay on track amidst extreme additional macro-economic challenges and geopolitical uncertainty?
• What does it really mean to be a responsible investor?
• How can NGOs and lobbyist pressure groups and insurers engage in a positive way to effect change?
• Navigating the complexities around social and governance factors
• Moral judgements – how do we decide what is socially acceptable and what isn't
• Putting a robust net zero transition plan in place – what does good look like?
• Climate solution opportunities – sourcing and accessing suitable green investment opportunities
• Getting comfortable with the green premium and understanding the trade-off.
• How is data evolving?

Moderator:
Elsa Palanza, Global Head of Sustainability and ESG, Intermediate Capital Group (ICG)

Panellists:
José Luis Jiménez, Chief Investment Officer, Mapfre
Michèle Lacroix, Group Head of Sustainability, Scor
Aileen Mathieson, Group Chief Investment Officer, Aspen
Hetal Patel, Head of Climate Investment Risk, The Phoenix Group

FIRESIDE CHAT

Eleanor Bucks, Chief Investment Officer, Lloyd's of London

Closing remarks

End of conference