NEAM Insights

In the Spring of 2025 Germany announced its intention to increase spending in a manner that was unimaginable at the start of this year, not to speak of a decade ago. The scale of Germany’s fiscal shift is enormous with potential implications for economic growth, inflation, and geopolitics. Exhibit 1 illustrates that expenditure in the coming years (% of GDP) is forecast to rival the amount spent on German reunification. Read More

As sustainability factors become embedded in insurers’ investment strategies, and non-financial disclosures become more standardised globally, the defence sector presents both challenge and opportunity within fixed income strategies. Long viewed as a standard exclusion, institutional investors are reassessing their stance on the sector and considering the potential positive impact that may be achieved through selective investment in the space, supported by regulatory guidance. Read More

Solvency UK The Solvency II regulatory regime came into force across the European Union ("EU") on 1 January 2016. Following the UK’s exiting from the EU, the UK Government announced a review of the Solvency II framework and launched consultations in April 2022. It followed up with final proposals on 17 November 2022 and revealed draft legislation on 20 June 2023. The Prudential Regulation Authority (“PRA”) followed up with a consultation on technical details on 29 June 2023. Read More

Introduction On 25 October 2021, Lloyd’s published the Revised Membership & Underwriting Conditions and Requirements (“the new M&URs”; Lloyd’s Market Bulletin Y5353), culminating an 11-month process since the initial consultation document was introduced. In response, capital providers (“members”) have started to make adjustments and we are seeing some early signs of where the market is moving under the new regulation. Read More

No Bright Lines Since the financial crisis in 2008/2009, the lines between Central Banks and elected political officials have become increasingly blurred. The issuance of trillions of dollar, euro and yen denominated debt, much of which has been absorbed by Central Bank (CB) balance sheets, has brought the question of CB independence into bold relief. In this article, we briefly discuss the current “joined at the hip” nature of central banks, fiscal authorities and elected officials by citing a few prominent examples. Read More

As insurers grapple with the development of an Environmental Social & Governance “ESG” strategy that aligns with company values, long-term business objectives and fast evolving public perceptions, UK regulators have been providing direction in the area of Climate Change Risk. Read More

In December of 2020 Lloyd’s published its “Environmental, Social and Governance (“ESG”) Report 2020.” Referencing the report, Lloyd’s Chairman Bruce Carnegie-Brown states “This is the first time we have set an ESG strategy for the Lloyd’s market and it represents an important milestone on the journey towards building a more sustainable future.” The report covers both underwriting and investment activity, but in this Quick Takes we will focus on the potential impact of this shift to responsible investing on Lloyd’s investment portfolios. Read More

European banks have been one of the weakest performing sectors of the equity market over recent years. We look at the sector from a credit perspective and show how a potentially stronger European Union (EU) post COVID-19, with greater levels of European fiscal integration, could positively impact this important asset class. Read More

The far-reaching Macron-Merkel European Union (EU) recovery plan gained considerable attention when it was announced on 18 May 2020 at a video conference in Paris. As heads of state of the EU’s two largest countries and premiers of the EU’s Franco-German twin engine, France’s President Emmanuel Macron and Germany’s Chancellor Angela Merkel were ideally placed to make such a bold proposal. Read More

In June, for the second year running, NEAM Limited conducted its annual Lloyd’s Syndicate Investment Survey. In this article, we review the key investment trends for Lloyd’s syndicates as indicated by our survey respondents, examine these trends in the broader insurance sector context and highlight important considerations for Managing Agencies for the remainder of this year. Read More