Sun Life, Manulife, and Allstate lead the pack in sustainability performance
NEW YORK, July 12 /PRNewswire/ -- Innovest Strategic Value Advisors Inc.,
the global leader in analyzing non-traditional sources of investment risk, has
released its most recent report on the North American insurance industry. The
report ranks 31 companies on key non-traditional issues, such as social and
environmental management, and assesses a wide spectrum of key industry
drivers. This follows a trio of new banking reports covering the UK, Asia
Pacific and North America.
Relative to global best practice, the new Insurance Sector Report finds
North American insurers as a group to lag far behind their European
counterparts, particularly with respect to the growing risks from climate
change.
Sector leaders in the North American insurance sector include two Canadian
life and health insurance companies, Sun Life and Manulife, followed by
Allstate, a US property and casualty insurer. AIG, the world's largest
insurer, fell from an AAA rating to an A rating mainly due to governance and
regulatory issues. Innovest's report found, in general, the higher than
average rated companies have greater commitment and resources allocated for
strategic initiatives, corporate reporting, new sustainable product
development, human resources, community work and environmental management. The
leaders in this sector are at the forefront of integrating sustainability
risks and opportunities. Insurers that have implemented and enforced strategic
measures that both mitigate risks and enhance reputation score highly.
Brigid Barnett, CFA, senior analyst and lead author of the report states,
"The North American insurance sector is faced with a distinct set of
sustainability risks and opportunities, mainly focused on business integrity
and governance, increased regulatory attention, long tail liabilities and tort
reform, implications of an aging population and new health risks as well as
the rising cost of natural catastrophes and climate change, customer
confidence, and issues associated with expansion in emerging markets." She
adds, "Social and environmental issues are present in underwriting activity
and asset management. These sustainability issues can have significant impacts
on risk management, reputation, customer loyalty, recruiting, and regulatory
matters."
North American insurance companies have generally been slow to move on
sustainability issues, although now both direct and indirect impacts are being
addressed to varying degrees and disclosure is slowly increasing.
Regarding climate change, 2004 was one of the costliest years for weather
events with high insured losses in the US and the Caribbean as a result of
hurricanes. As Barnett points out, "Although there is continued debate
regarding the increasing frequency of extreme events, climate change may
already be impacting insurers' financial position, pressuring both reinsurers
and insurers. Incorporating the risks of climate change into products and
investment strategies is likely to be an increasingly important element of
business success. Increasingly, companies in this sector in other
jurisdictions are exploring the potential impacts of climate change but also
related insurance opportunities, such as the development of emissions trading,
weather derivatives, and cat bonds."
About Innovest
Innovest Strategic Value Advisors is an internationally recognized
investment research and advisory firm specializing in analyzing non-
traditional sources of investment risk and out-performance. Innovest's major
strategic investor is ABP, the largest pension fund in Europe. Its chairman,
Jim Martin, was chief investment officer for TIAA-CREF, one of the largest
pension funds in the world, for over fifteen years. The firm's founder and
Chief Executive, Dr. Matthew Kiernan, is a former partner with KPMG and
director of the World Council for Sustainable Development in Geneva. In
addition to ABP, the firm's other clients include Cazenove Capital, BP
Investments, UBS and the England & Wales Environment Agency. The firm
currently has over #500 million under direct sub-advisory mandates, and has
clients in 20 countries.
For further information please visit the company's website at
http://www.innovestgroup.com .
SOURCE Innovest Strategic Value Advisors Inc.
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Related links:
http://www.innovestgroup.com
CONTACT:
Nicola Simpson - London, +44-0-20-7073-0477,
nsimpson@innovestgroup.com; Peter Wilkes - New York,
+1-212-421-2000 x216, pwilkes@innovestgroup.com; Susan Viets -
Toronto, +1-905-707-0876 x246, sviets@innovestgroup.com, Pierre
Trevet - Paris, +33-1-44540489, ptrevet@innovestgroup.com, all of
Innovest Strategic Value Advisors Inc
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