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International News

Munich Re issues first-ever green bond

Munich Re will use the raised capital to finance or refinance sustainable projects in accordance with the company’s Green Bond Framework. Projects include investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and wastewater management, the eco-efficient and/or circular economy, and the environmentally sustainable management of living natural resources and land.

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Insurers’ hedge fund investments may face chop after dismal pandemic performance

Those regulations have partly driven recent falls in hedge fund allocations, according to Andries Hoekema, global insurance sector head at HSBC Global Asset Management, but he noted holdings were down also in Asia, which hadn’t tightened rules.

“In Asia, we have some evidence of insurers replacing hedge fund exposure with private equity,” Hoekema said.

This was “driven partly by the more attractive returns of private equity and partly by the disappointing diversification properties of some hedge fund strategies in recent years,” he added.

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 MENA reinsurers strive to adapt to testing conditions:AM Best

AM Best notes that in general, the region’s reinsurers have demonstrated resilience in a difficult operating environment. The strategies adopted by MENA reinsurers vary considerably. Certain reinsurers benefit from long-standing legal cessions in their domestic markets, while others focus on providing proportional capacity. Strategic shifts are ongoing, with some looking to increase nonproportional and facultative business, as well as improve regional and international diversification.

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AXA XL appoints Jonathan Salter as Head of Risk Consulting

Nancy Bewlay, Global Chief Underwriting Officer at AXA XL, said: “As the COVID-19 crisis continues to challenge the way companies operate, loss prevention has never been more important. Jonathan’s extensive experience, innovative approach and proven track record position him ideally to lead AXA XL Risk Consulting, which has, since March, been offering remote services, including site analysis. Our remote, tech-enabled capabilities have been extremely well received by clients and now form a key part of our product suite.”    

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Peak Re appoints Andrew Souter as Director of Markets

Commenting on the new appointment, Franz Josef Hahn, Chief Executive Officer of Peak Re, said “Andrew’s extensive experience working with the capital markets and strong client relationships with global insurers will strengthen our ILS capabilities and will help us to continue to bring unique and innovative (re)insurance solutions to both our customers and investors as we expand further as an organisation”

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Top shipping insurance group will not cover ships for Russia, Turkey pipelines projects

U.S. President Donald Trump’s administration has sought to curb the Kremlin’s economic leverage over Europe and Turkey and has warned investors in the two natural gas pipelines could face sanctions.

The International Group of P&I Clubs represents the world’s top 13 ship insurers and covers nearly 90% of the world’s ocean-going tonnage. The notice carried by its members said that all clubs had issued similarly worded circulars regarding Nord Stream 2 and TurkStream.

Led by Russia’s Gazprom, the $11 billion Nord Stream 2 pipeline project to double the capacity of the existing Nord Stream 1 link is more than 90% complete and scheduled to begin operating next year.

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IMF official warns coronavirus will weigh on some economies for years

The Fund has provided some $90 billion in total financing to 79 countries, including 20 in Latin America, since the start of the health crisis, an IMF spokeswoman said.

It is continuing to work with member countries on how to contain the pandemic and mitigate its economic impact, First Deputy Managing Director Geoffrey Okamoto told an online event hosted by the Center for Strategic and International Studies.
Okamoto told that Fund officials were in talks with the Group of 20 major economies about extending a temporary halt in official bilateral debt service payments by low-income countries under the Debt Service Suspension Initiative (DSSI), and how to kickstart private sector participation.

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California to ban sale of new gasoline-powered passenger vehicles starting in 2035

The move is the most significant yet by a U.S. state aimed at ending the use of fossil fuel-burning internal combustion engines, and clashes with the pro-fossil fuel policies of President Donald Trump’s White House.
The California Air Resources Board (CARB) will turn Newsom’s goal into a legally binding requirement by writing regulations to mandate that 100% of in-state sales of new passenger cars and trucks are zero-emission by 2035. The board also plans to mandate by 2045 that all operations of medium- and heavy-duty vehicles be zero-emission where feasible.
Environmental groups praised the governor’s action on clean vehicles, but automakers were skeptical.
California said it was joining 15 countries that have made similar pledges, including Britain.

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