Case study: Controversial Arms Trade A case study prepared for the Fair Insurance Guide Case study: Controversial Arms Trade A case study prepared for the Fair Insurance Guide Anniek Herder Alex van der Meulen Michel Riemersma Barbara Kuepper 18 June 2015, embargoed until 18 June 2015, 00:00 CET Naritaweg 10 1043 BX Amsterdam The Netherlands Tel: +31-20-8208320 E-mail: [email protected] Website: www.profundo.nl Contents Summary ..................................................................................................................... i Samenvatting .......................................................................................................... viii Introduction ................................................................................................................ 1 Chapter 1 Background ...................................................................................... 2 1.1 What is at stake? ....................................................................................... 2 1.2 Trends in international arms trade .......................................................... 3 1.3 International standards............................................................................. 4 1.3.1 Arms embargoes ......................................................................................... 4 1.3.2 EU arms export policy ................................................................................. 4 1.3.3 Arms Trade Treaty ...................................................................................... 5 1.4 Definition controversial arms trade ......................................................... 5 Chapter 2 Methodology ..................................................................................... 7 2.1 Approach ................................................................................................... 7 2.2 Selected insurance groups ...................................................................... 7 2.3 Selection of countries ............................................................................... 8 2.3.1 Arms embargoes ......................................................................................... 8 2.3.2 Unfree countries ........................................................................................ 10 2.3.3 Armed conflict ........................................................................................... 10 2.3.4 Corruption ................................................................................................. 11 2.3.5 Fragile states ............................................................................................ 12 2.3.6 Poverty and military spending ................................................................... 13 2.3.7 Final selection ........................................................................................... 13 2.4 Selection of companies .......................................................................... 17 2.4.1 Airbus Group (France) .............................................................................. 19 2.4.2 BAE Systems (United Kingdom) ................................................................ 21 2.4.3 Boeing (United States) .............................................................................. 22 2.4.4 Finmeccanica (Italy) .................................................................................. 23 2.4.5 General Dynamics (United States) ............................................................ 25 2.4.6 Honeywell International (United States) .................................................... 26 2.4.7 Lockheed Martin (United States) ............................................................... 27 2.4.8 Northrop Grumman (United States) ........................................................... 29 2.4.9 Orbital ATK (United States) ....................................................................... 30 2.4.10 Raytheon (United States) .......................................................................... 31 2.4.11 Saab Group (Sweden) .............................................................................. 32 2.4.12 Textron (United States) ............................................................................. 33 2.4.13 Thales (France) ......................................................................................... 34 2.4.14 ThyssenKrupp (Germany) ......................................................................... 36 2.4.15 United Technologies Corporation (United States) ..................................... 37 2.5 Limitations of this research ................................................................... 38 Chapter 3 Investments of insurance companies in controversial arms trade40 3.1 Achmea .................................................................................................... 40 3.1.1 Company profile ........................................................................................ 40 3.1.2 Shareholdings ........................................................................................... 40 3.1.3 Bond holdings ........................................................................................... 41 3.1.4 Investment policy ...................................................................................... 41 3.1.5 Conclusion ................................................................................................ 41 3.1.6 Response .................................................................................................. 41 3.2 Aegon ....................................................................................................... 41 3.2.1 Company profile ........................................................................................ 41 3.2.2 Shareholdings ........................................................................................... 42 3.2.3 Bond holdings ........................................................................................... 43 3.2.4 Investment policy ...................................................................................... 45 3.2.5 Conclusion ................................................................................................ 46 3.2.6 Response .................................................................................................. 46 3.3 Allianz ...................................................................................................... 47 3.3.1 Company profile ........................................................................................ 47 3.3.2 Shareholdings ........................................................................................... 47 3.3.3 Bond holdings ........................................................................................... 50 3.3.4 Investment policy ...................................................................................... 54 3.3.5 Conclusion ................................................................................................ 54 3.3.6 Response .................................................................................................. 54 3.4 APG .......................................................................................................... 55 3.4.1 Company profile ........................................................................................ 55 3.4.2 Shareholdings ........................................................................................... 55 3.4.3 Bond holdings ........................................................................................... 56 3.4.4 Investment policy ...................................................................................... 56 3.4.5 Conclusion ................................................................................................ 56 3.4.6 Response .................................................................................................. 56 3.5 ASR .......................................................................................................... 57 3.5.1 Company profile ........................................................................................ 57 3.5.2 Shareholdings ........................................................................................... 57 3.5.3 Bond holdings ........................................................................................... 57 3.5.4 Investment policy ...................................................................................... 57 3.5.5 Conclusion ................................................................................................ 58 3.5.6 Response .................................................................................................. 58 3.6 Delta Lloyd............................................................................................... 58 3.6.1 Company profile ........................................................................................ 58 3.6.2 Shareholdings ........................................................................................... 59 3.6.3 Bond holdings ........................................................................................... 59 3.6.4 Investment policy ...................................................................................... 60 3.6.5 Conclusion ................................................................................................ 60 3.6.6 Response .................................................................................................