“The Austrian insurance companies and Pensionskassen (pension companies) are only marginally directly affected by the US real estate crisis and the sub-prime market earthquake,” FMA Executive Director Heinrich Traumüller summarises a current survey conducted by the Financial Market Authority across the whole of Austria. In the case of Pensionskassen, only some 0.8 per cent of the invested assets were invested in so-called Asset Backed Securities (ABS). Even though 72 per cent of those were invested on the US market, they concerned almost exclusively special securities with an additional US government guarantee, so they do not bear any credit risk. In the case of insurance companies, ABS account for 2.6 per cent of the entire capital investments worth €78.7 billion. Of these ABS investments amounting to some €2 billion, only 22 per cent have been directly invested, 78 per cent indirectly in funds which hold such securities, among others. More than 99 per cent of these ABS investments have been designated as “Investment Grade” with a good credit rating. The average ABS share of those companies that invested in this segment amounts to 3.6 per cent (carrying amounts). According to today’s state of knowledge, the theoretical need to write down assets for the entire insurance industry is 0.03 per cent.
“These facts prove that Austrian insurance companies and Pensionskassen are pursuing a risk aware investment strategy,” says FMA Executive Director Mr Traumüller in conclusion.
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516