Photographer: Brendon Thorne/Bloomberg

Australia’s Dwindling Bond Rates Set to Spur Insurer Risk-Taking

  • Investment returns fell 47% to A$2.2 billion in 2015: Fitch
  • Insurers prop up profits with price hikes, cheaper reinsurance

Shrinking bond yields are challenging some of Australia’s most conservative institutional investors -- the nation’s general insurers -- as they struggle to generate income and safeguard thinning margins.

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