There existed a fundamental conflict between stockholders and policyholders related to the presence of participating policies, and the only way to resolve this conflict was to remove it, via mutualization
And with Angela Merkel at the helm, so far this has meant looking first to keep her political base secure and use domestic political constraints to avoid turning the rescue of the euro into a huge transfer union with debt mutualization
His comments may inflame critics of euro zone bailouts in Germany and other northern European countries, who vehemently oppose any mutualization
of fiscal risk in the 17-nation single currency area.
It is interesting to note that shareholders have received positive value during demutualization and during mutualization
Dimon said Germany was right to oppose any mutualization
of eurozone countries' debt, but the chief executive of German retailer Metro, Eckhard Cordes, said that even though the idea of common eurozone bonds was not popular in Germany, it was the only alternative to "some countries going belly-up.
Professional reinsurers do indeed hold very diversified portfolios, both geographically and across insurance lines, and thus their behavior seems in line with the mutualization
In addition, the sponsoring bank would be responsible for any mutualization
of liquidation loss attributable to activity by a sponsored fund.
The auctions use a patented application of risk mutualization
developed by Longitude, Inc.
With such mutualization
, policyholders of even stock insurance firms hold, at least in part, a claim on the insurer's residual cash flows.
Optimal arrangements for sharing the risks of catastrophes include both within-region mutualization
and cross-region bets on the extent of aggregate loss.
She will constrain some of French President Emmanuel Macron's more ambitious ideas, such as a eurozone budget, and will stay clear of any real move toward debt mutualization
The new government might talk about restarting the EU's Franco-German engine of reform, but it is unlikely to support proposals for debt mutualization
or the creation of a sizeable common budget.