
The use of insurance policies to mitigate operational risk 247
according to market analysts Allianz had to sell equities in its portfolio in order to
save at least some of its core capital.
Other insurance companies, including Munich Re, were also selling their stock
holdings, further contributing to the market meltdown. The panic button was hit by
insurers because about 30% of the assets of Europe’s insurance companies had been
invested in the stock markets (see Chapter 10), and more than $165 billion of that
money evaporated with the stock market crash.
The capitalization of major insurance companies themselves took a severe hit. The
stock of Allianz, ...