Impact of UFR change minimal: Bernstein

The European regulator's decision to reduce the ultimate
forward rate (UFR) from 4.20 percent to 3.65 percent will have a
limited impact on most (re)insurers, according to a note from
Bernstein analyst Thomas Seidl.
The European Insurance and Occupational Pension Authority
(Eiopa)'s impact study found that reinsurers will be broadly
unaffected, with life and composite carriers the most impacted by
the rate change.
The UFR is used to calculate the risk-free rate which is the
basis for discounting