Optimizing Insurance Firm Capital During Increased Systemic Risk

Insurance firms need capital to absorb losses from expected events, unexpected but foreseeable events and unforeseen events “known-knowns, known-unknows, unknown-unknowns” . Investors will, in stressed times, no longer give insurance companies the benefit of the doubt and will assign a punitive cost of equity to the sector.

Contents: Determining Required Capital, Optimizing Capital, Financing at Lowest Cost, Maintaining Flexibility