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Axa Sa — Fitch Ratings — Conference Presentation (February 2007)

7 slides from Axa Sa's conference presentation, February 2007

  1. Slide 1: The Development of a Liquid Market in Traded Mortality and Longevity

    The Development of a Liquid Market in Traded Mortality and Longevity Dominic Carpenter February 2007

  2. Slide 2: The Market to Date

    The Market to Date > Corporate Pension Scheme Potential Transactions – UK market estimated in excess of GBP1,000bn – To date limited transactions – Political, accounting and economic landscape is continually changing > Insurer to Insurer Potential Transactions – Very small compared to size of corpor

  3. Slide 3: Market Constraints

    Market Constraints > Outstanding Hurdles – Need an established market bid / offer price on longevity – Needs to be packaged as a shorter term asset – Market needs greater confidence in the future trend assumption > There can be significant basis risk > Mark to model pricing – Investors need greater

  4. Slide 4: Market On The Up

    Market On The Up > Overcome Hurdles – Increase in levels of supply – Longevity is being increasingly understood – Longevity indices have started – Innovative structures are being created – Solution to scheme ownership > Investor Interest – Noticeably rising – Waiting for an acid test > EIB/BNP bond,

  5. Slide 5: Fitch's Involvement and Outlook

    Fitch’s Involvement and Outlook > Fitch anticipates growth – An increasing number of suppliers – May still be a few years away from “exploding” > Fitch’s Involvement – Willing to provide a rating opinion on long dated assets – Transactions to date have just fallen short > Largely due to investor int

  6. Slide 6: Conclusion

    Conclusion > Fitch anticipates growth – Hurdles still to overcome > Tangible growth in supply > Demand growth is as yet untested – But there is significant noise > A very interesting area

  7. Slide 7: The Fitch Group Fitch Ratings Algorithmics

    Fitch Ratings New York London Singapore www.fitchratings.com One State Street Plaza 101 Finsbury Pavement 7 Temasek Blvd. New York, NY 10004 London Singapore 038987 +1 212 908 0500 EC2A 1RS +65 6336 6801 +1 800 75 FITCH +44 20 7417 4222 The Fitch Group Fitch Ratings Algorithmics Fitch Training

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