E.U. Solvency II Ratios, June 2016
While publication of solvency ratios for the insurance industry is not a requirement, many companies do publish this information as part of their risk appetite and financial targets. The E.U. solvency regime, called Solvency II, also allows countries operating outside the E.U., ‘third country insurers’, to operate and comply with E.U. rules.
The chart, compiled by Guy Carpenter, a Marsh & McLennan company, and published in February 2017, shows Solvency II ratios among (re)insurers for the first half of 2016. These solvency ratios represent a metric investors can use when assessing relative financial strength of companies they wish to invest in. (Re)insurance buyers can also do the same when addressing counterparty risk.