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Dutch central bank rejects insurers' yield curve request
August 29, 2013 / 9:19 PM / 4 years ago

Dutch central bank rejects insurers' yield curve request

AMSTERDAM, Aug 29 (Reuters) - The Dutch central bank on Thursday rejected a request by the country’s insurers to be allowed to use a different interest rate term structure to discount their insurance liabilities following France’s loss of triple A credit rating in July.

The decision means Dutch insurers, which include Aegon and ING’s Nationale-Nederlanden, will still be obliged to use either a yield curve provided by the Dutch central bank or one provided by the European Central Bank when calculating their long-term liabilities.

That means it will not become cheaper for insurance companies to match those liabilities.

When France was downgraded in July its government bonds, which had been among the highest-yielding triple A paper, were no longer included in the ECB’s yield curve, leading the Dutch Association of Insurers to ask the Dutch central bank, their regulator, to allow them to use an alternative yield curve. (Reporting By Thomas Escritt; Editing by Sara Webb)

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