Twelve Capital has said it believes the sector will benefit from a number of factors in 2022, including higher interest rates, improved pricing, and an increased ESG focus.
In a note to investors, the firm said that it sees attractive opportunities in insurance fixed income due to credit spreads being higher than those of corporates, despite insurers’ very-low default rates and strengthened fundamentals.
“In particular,” wrote the note’s authors, “we see the rising yield environment in the USA and UK, and to a lesser extent in the European Union, as the key positive driver from a macroeconomic standpoint.”
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