COMPANIES The huge falls in bank shares this week were the more public sign of the pressure on financial institutions. But insurers and asset managers are equally concerned with the fate of billions of pounds, dollars and euros worth of certain UK bank bonds in which they are invested.
Concerns about the collapsing values of these lesser-known hybrid securities in turn hit the share prices of UK and European insurers Friday after analysts at Morgan Stanley said that US insurer Aflac’s capital could be hit by its $8bn (£5.8bn) holding of such bonds. Aflac on Friday reassured on its capital position.
