International investment in European pensions

Kennisbank •

The European pension market, including mature systems in countries such as the Netherlands, the UK, and Germany, attracts significant interest from foreign investors despite its complex and stringent regulatory environment.

International investment in European pensions

These investors face substantial challenges, including rigorous capital requirements under frameworks like Solvency II, evolving pension reforms, and intricate local market nuances.

Nevertheless, foreign investors continue to allocate capital to European pensions, driven by factors that outweigh these regulatory and operational difficulties. The scale of assets supporting pensions in Europe provides access to large, well-managed pools that are difficult to replicate elsewhere. Furthermore, the long-term, stable cash flows and diversified risk profiles of pension liabilities align with the strategic objectives of international insurers and asset managers seeking growth beyond their often-saturated domestic markets.

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Over de auteur

Josh Kadish FASSA

Actuarial Consultant and Manager at Oliver Wyman.