The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Insurance survey 2009: Insurers take cover to avoid capital crunch

The demise of AIG has inflicted an identity crisis on the insurance industry. But insurers face exposure to distressed assets, accounting and valuation issues and a potential shortage of capital. Sounds familiar? Helen Avery reports on how insurers believe they will avoid the same fate as the banks.

Insurers take cover to avoid capital crunch

Insurance survey: Global results

Insurance survey: Full results

Insurance survey: Use of alternative risk transfer

Insurance survey: Methodology


MOST LEADING INSURERS say they have little in common with the failed financial institution that AIG became. They’re right. But leading insurance executives should be more concerned about differentiating the industry from a banking sector in crisis.

In February, UK hedge funds Lansdowne Partners, and Odey Asset Management went short UK insurers. Lansdowne took a short position in Prudential worth about £10.5 million ($15.2 million), a £26.2 million short in Aviva, and further short positions in Legal & General and Old Mutual. Odey Asset Management took a £7.1 million short position in Legal & General. Before the introduction of UK regulation that states that short sales of financial stocks must be disclosed, such behaviour would have gone unnoticed.

But in an environment where investors are scrutinizing every move by short-sellers to see where the next blow-up is going to come from, the strategies of Lansdowne and Odey have made people nervous.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree