Almost one third of the assets of the insurance funds that connected with investment units is placed in bonds, according to figures released by the Insurance Companies Association recently.
The figures show that the big insurance funds invested in bonds despite the increased risks due to the fiscal condition in the euro area countries such as Greece.
In 2010, the insurance funds had 28.2% of their assets in bonds. The investments reached €348 million against €357 million in 2009.
Those sums are only a part of the total investments of the insurance funds in bonds, since they only concern those that are connected with investment units.
The total investments of the funds in bonds reach €760 million.
No reference to the bonds’ issuers is made in the figures. It is estimated, however, that they include Cyprus and Greece, which faces a possible debt restructuring with a “haircut” of the bonds to the burden of its creditors.
The investments of the insurance funds in deposits are regarded as safer, however, their assets in them seem to have dropped.
The funds’ deposits stood from €317.9 million last year to €296.3 million in 2011, which is 24% of the total investments against 26% in 2009.
As for the value of the investments in shares, it stood at €110.1 million in 2010 against €116.1 million in 2009. As a percentage on their total investments, the shares absorbed 8.9% against 9.5% in 2009.
Overseas, the value of investments in shares reached €30.9 million from €310.3 million.
Although properties are only a small part of the investments, they recorded an increase compared to 2009. Specifically, the funds invested €94.6 million in properties in 2010 from €72.7 million in 2009.
According to Eurolife Fund Manager, Constantinos Sophocleous, some insurance companies might have turned to properties because of certain opportunities.
The companies also injected €66.2 million to other assets against €23 million in 2009.
Overall, the insurance funds increased their assets by €13.6 million in 2010.
Their assets stood at €1,235.4 million compared to €1,221.8 million in 2010.
The figures show that the big insurance funds invested in bonds despite the increased risks due to the fiscal condition in the euro area countries such as Greece.
In 2010, the insurance funds had 28.2% of their assets in bonds. The investments reached €348 million against €357 million in 2009.
Those sums are only a part of the total investments of the insurance funds in bonds, since they only concern those that are connected with investment units.
The total investments of the funds in bonds reach €760 million.
No reference to the bonds’ issuers is made in the figures. It is estimated, however, that they include Cyprus and Greece, which faces a possible debt restructuring with a “haircut” of the bonds to the burden of its creditors.
The investments of the insurance funds in deposits are regarded as safer, however, their assets in them seem to have dropped.
The funds’ deposits stood from €317.9 million last year to €296.3 million in 2011, which is 24% of the total investments against 26% in 2009.
As for the value of the investments in shares, it stood at €110.1 million in 2010 against €116.1 million in 2009. As a percentage on their total investments, the shares absorbed 8.9% against 9.5% in 2009.
Overseas, the value of investments in shares reached €30.9 million from €310.3 million.
Although properties are only a small part of the investments, they recorded an increase compared to 2009. Specifically, the funds invested €94.6 million in properties in 2010 from €72.7 million in 2009.
According to Eurolife Fund Manager, Constantinos Sophocleous, some insurance companies might have turned to properties because of certain opportunities.
The companies also injected €66.2 million to other assets against €23 million in 2009.
Overall, the insurance funds increased their assets by €13.6 million in 2010.
Their assets stood at €1,235.4 million compared to €1,221.8 million in 2010.
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