The average market risk premium in the United States remained at *** percent in 2025. This suggests that the returns that investors expected for their investrments remained the same as the previous year in that country, in exchange for the risk they are exposed to. This premium has hovered between *** and *** percent since 2011. What causes country-specific risk? Risk to investments come from two main sources. First, inflation causes an asset’s price to decrease in real terms. A 100 U.S. dollar investment with three percent inflation is only worth ** U.S. dollars after one year. Investors are also interested in risks of project failure or non-performing loans. The unique U.S. context Analysts have historically considered the United States Treasury to be risk-free. This view has been shifting, but many advisors continue to use treasury yield rates as a risk-free rate. Given the fact that U.S. government securities are available at a variety of terms, this gives investment managers a range of tools for predicting future market developments.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRPs, including required market risk premiums, historical market risk premiums, and expected market risk premiums. United Kingdom shows little return for risk Europe-wide, Finland had one of the lowest MRP alongside Poland and Germany. Ukraine had average risk premiums of *** percent in 2025. Having a lower market risk premium may seem bad, but for countries such as the UK and Germany where rates have been consistent for several years, it is because the market is stable as an environment for investment. Risk-free rates Risk-free rates are closely associated with market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk-free rates across Europe are relatively low.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2025, average market risk premiums in Germany stood at *** percent. MRP in Europe As of 2025, Germany had one of the ****** average market risk premiums in Europe. At the same time, market risk premiums in Russia were more than ***** as high due to the risk of investment involved. Risk free rates Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk free rates across Europe were relatively low in 2025. The risk free rate of investment in Germany was less than three percent as of 2025.

Risk premium on lending of Malawi surged by 6.92% from 19.85 % in 2023 to 21.22 % in 2024. Since the 9.90% drop in 2021, risk premium on lending soared by 49.90% in 2024. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

Split into three categories (required, historical, and expected), market risk premiums measure the rate of return investors expect on an investment over the risk that investment holds. In Europe, average market risk premiums (MRP) sit between four and 12 percent. Greece sees hike in MRP Although it has a relatively high market risk premium, Greece has seen its rates significantly decrease since 2020. Greece also saw a *** percent return rate on risk-free investments. The same correlation can be seen with Europe’s less risky countries for investment. With Germany seeing *** percent market risk premiums and *** percent risk-free returns in Europe. Required, historical, and expected Separating the three types of market risk premiums is straightforward. Required MRPs differ between investors, as approaches to investment change and measure the rate of return needed for an investment to be made. Expected premiums look at the rate of return and what they are calculated to come out as, while historical MRPs look back over a period at the average rate of return that investors previously got in the past.

Risk premium on lending of Nigeria surged by 5.79% from 8.77 % in 2022 to 9.28 % in 2023. Since the 22.42% drop in 2021, risk premium on lending reduced by 0.41% in 2023. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

This statistic illustrates the average market risk premium in Russia from 2011 to 2024. The average market risk premium in Russia reached a value of **** percent in 2024.

Risk premium on lending of Hong Kong slumped by 9.35% from 1.91 % in 2023 to 1.73 % in 2024. Since the 8.02% surge in 2021, risk premium on lending sank by 65.10% in 2024. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

The average market risk premium in South Africa increased to *** percent in 2024. Market premium risk represents the difference between return on equities and a risk-free investment, which is normally associated with short-term government bonds. For comparison, the U.S. market premium risk amounted to *** percent in the same year. Risk-free rate Most analysts consider the U.S. treasury rate to be the risk-free rate for the term of their investment, assuming the United States government will not default. Just as consumers in the Unites States get a credit rating, agencies such as Standard & Poor’s rate countries’ credit risks. Using these data, analysts compute the country-specific default risk, which in turn has an influence on the value of risk-free rate. What influences the return on equities? The economic factors such as political stability in a country, inflation rate, level of indebtment, trade deficit and investments have an influence on the activities of companies and their valuation on the stock exchanges. Apart from the economic cycle, the company’s operations itself, which are reflected in the results published in the financial reports, can boost or diminish the stock returns.

Risk premium on lending of Israel plummeted by 58.38% from 3.10 % in 2021 to 1.29 % in 2022. Since the 0.09% climb in 2019, risk premium on lending sank by 60.63% in 2022. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

42.59 (%) in 2021. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

Indonesia Market Risk: Securities Composition: by Measurement: Measured at Fair Value Derived through Income Statement: Set to be measured at fair value data was reported at 0.182 % in Dec 2021. This records an increase from the previous number of 0.154 % for Nov 2021. Indonesia Market Risk: Securities Composition: by Measurement: Measured at Fair Value Derived through Income Statement: Set to be measured at fair value data is updated monthly, averaging 0.141 % from Jan 2014 (Median) to Dec 2021, with 96 observations. The data reached an all-time high of 0.646 % in Dec 2017 and a record low of 0.008 % in Jan 2014. Indonesia Market Risk: Securities Composition: by Measurement: Measured at Fair Value Derived through Income Statement: Set to be measured at fair value data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI012: Financial System Statistics: Banking Sector.

Indonesia Market Risk: Securities Composition: by Type: Capital Market Securities data was reported at 86.102 % in May 2022. This records an increase from the previous number of 85.252 % for Apr 2022. Indonesia Market Risk: Securities Composition: by Type: Capital Market Securities data is updated monthly, averaging 74.087 % from Dec 2014 (Median) to May 2022, with 90 observations. The data reached an all-time high of 87.763 % in Apr 2021 and a record low of 61.633 % in Mar 2018. Indonesia Market Risk: Securities Composition: by Type: Capital Market Securities data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI012: Financial System Statistics: Banking Sector.

The risk-free rate is a theoretical rate of return of an investment with zero risk of financial loss. This rate represents the minimum interest an investor would expect from a risk-free investment over a period of time. It is important to remember that the risk-free rate is only theoretical, as all investments carry even the smallest of risks. Across European countries, average risk-free rates differed quite significantly. United Kingdom is low risk and low reward When average risk-free rates on a theoretical investment with no risk is ****, like seen in Turkey and Ukraine, the opportunity for high reward investments must seem tempting. But with high rewards come higher risks. Countries such as the UK and Germany have consistently shown *** risk-free rates due to their investment markets’ relative stability. Market risk premiums Market risk premiums (MRP) are a measure that is closely associated with average risk-free rates. MRPs are a measurement of the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRPs, including required market risk premiums, historical market risk premiums and expected market risk premiums. Like average risk-free rates, MRPs vary quite widely across Europe.

Brazil Loans: Stock: Household: Operation Risk A: Home Equity: Bahia data was reported at 9.690 % in Oct 2021. This records a decrease from the previous number of 11.110 % for Sep 2021. Brazil Loans: Stock: Household: Operation Risk A: Home Equity: Bahia data is updated monthly, averaging 12.040 % from Apr 2014 to Oct 2021, with 91 observations. The data reached an all-time high of 25.780 % in May 2014 and a record low of 9.430 % in Apr 2020. Brazil Loans: Stock: Household: Operation Risk A: Home Equity: Bahia data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB116: Loans: Stock: Household: Operation Risk: Home Equity. [COVID-19-IMPACT]

This table presents China’s local government bond issuance from 2015 to 2021. Data are obtained from the Wind Database.

Global life and health carriers have experienced major revenue swings in recent years. The COVID-19 pandemic depressed life insurance demand but boosted health insurance uptake and spending, ultimately leading to a rise in revenue in 2020. The economic recovery pushed incomes up in 2021, while high inflation and plunging stock prices led to a substantial drop in revenue in 2022. Interest rate hikes in many countries from 2022 to 2024 enhanced recessionary fears, hindering downstream demand for life and health insurance products. However, investment income surged due to higher returns on fixed income securities. This factor, along with spiking stock prices, fostered revenue growth in 2023 and 2024. As rate cuts have taken place since 2024, downstream demand is set to rise, but investment income is expected to fall, encouraging insurers to recalibrate their operations in this new environment. Amid these short-term shifts, insurers have been impacted by various long-term trends. Private health insurance demand has soared worldwide as aging populations, higher incomes and breakthroughs in costly treatments have driven healthcare spending upward. Meanwhile, consolidation among some insurers has reduced the number of locations, though strong long-term demand has raised entry into the industry, boosting internal competition. At the same time, digitization and AI are making firms more efficient and widening the gap between big and small carriers, with tech-savvy giants offering deeply personalized products and better customer loyalty. Overall, revenue for life and health insurance carriers worldwide has crept upward at a CAGR of 0.7% over the past five years, reaching $6.5 trillion in 2025. This includes a 2.7% increase in revenue in that year. Providers will face a slew of new opportunities and challenges moving forward. Recent US tariffs in 2025 have driven up consumer prices and enhanced financial stress in many countries, threatening economic growth and causing households to cut spending on life and health insurance products. While revenue growth may slow in the near term, long-term forecasts remain positive as the global economy recovers, employment rises and disposable incomes increase, supporting renewed demand for insurance products. Rising incomes among younger adults, especially in lower-income countries, and global aging trends are reshaping insurance demand. Insurers are now targeting tech-savvy new generations with digital platforms, while also developing tailored retirement products for a surging older population. Concurrently, greater regulations will heighten operational complexity and raise compliance and labor costs for insurers, putting some downward pressure on profit. Overall, revenue for global life and health insurance carriers is forecast to climb at a CAGR of 2.5% in the next five years, reaching $7.3 trillion in 2030.

Loans: Stock: Household: Operation Risk A: Home Equity: Roraima data was reported at 10.100 % in Jan 2025. This records a decrease from the previous number of 15.950 % for Dec 2024. Loans: Stock: Household: Operation Risk A: Home Equity: Roraima data is updated monthly, averaging 7.355 % from Apr 2014 (Median) to Jan 2025, with 130 observations. The data reached an all-time high of 25.920 % in Feb 2024 and a record low of 2.220 % in Nov 2021. Loans: Stock: Household: Operation Risk A: Home Equity: Roraima data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB128: Loans: Stock: Household: Operation Risk: Home Equity. [COVID-19-IMPACT]

The life insurance industry will once again develop positively in 2025. Its turnover is expected to fall by 1.3% year-on-year to 94.3 billion euros. Since 2020, an average annual decline in turnover of 4.9% has been recorded. The reasons for this development are high inflation, declining customer interest in standardised, low-return investments and strong competition from other financial products. In 2021, major industry players Allianz and R+V Versicherung abolished the premium guarantee on new policies for the first time. This means a higher risk for policyholders, but also the opportunity for higher returns.The increase in average life expectancy and the change in the population structure mean that financial provision products are becoming increasingly popular. The industry benefited from this trend in the past, as many customers took out capital-forming life insurance policies to provide for their old age. The high level of interest rates in the meantime has made life insurance more attractive again, as life insurers can achieve better returns on their investments thanks to higher interest rates. As life insurers invest a large proportion of their premiums in fixed-interest securities and other interest-bearing investments, higher interest rates lead to higher returns from these investments. At the same time, investment funds and other financial instruments in particular have become more popular. Life insurers are trying to benefit from this trend with unit-linked insurance policies.A stable, positive sales trend is once again expected for the industry over the next five years. Its turnover is expected to increase by an average of 0.6% per year and thus amount to 97 billion euros in 2030. Many insurance companies have sold their portfolios to so-called run-off companies and exited the industry. Consolidations and takeovers are likely to increase in the market in future. Since January 2025, the guaranteed interest rate for new contracts has been 1%, making products such as Riester contracts more attractive. Previously, a guaranteed interest rate of 0.25% applied to new contracts in the years 2022 to 2024. In addition, the European Commission presented a proposal to revise the Solvency II Directive in September 2021, which provides for even stricter capital adequacy rules for insurance companies. It remains to be seen whether regulation will increase further in this respect.

Loans: Stock: Household: Operation Risk A: Nonearmarked: Piauí data was reported at 8.540 % in Jan 2025. This records an increase from the previous number of 8.050 % for Dec 2024. Loans: Stock: Household: Operation Risk A: Nonearmarked: Piauí data is updated monthly, averaging 7.945 % from Apr 2014 (Median) to Jan 2025, with 130 observations. The data reached an all-time high of 24.470 % in May 2014 and a record low of 3.270 % in Jan 2021. Loans: Stock: Household: Operation Risk A: Nonearmarked: Piauí data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB128: Loans: Stock: Household: Operation Risk: Home Equity. [COVID-19-IMPACT]