FRANKFURT May 9 Germany's top financial market
regulator on Tuesday said it expected the nation's insurance
companies to provide sufficient solvency ratios when they are
published for the first time later this month, despite pressure
from low interest rates.
"Risk management and risk awareness of insurers has
increased dramatically," Felix Hufeld, president of the
regulator, said at a news conference. "And we are expecting that
all companies will present sufficient Solvency II ratios on May
Frank Grund, head of insurance supervision at BaFin, warned
not to read too much into the headline Solvency II figures. An
insurer with a seemingly better solvency ratio could actually
have a relatively more volatile portfolio than a competitor with
a lower solvency ratio, he said.
Since the start of 2016, European insurers have been subject
to harmonized regulation, known as Solvency II. The aim is to
ease the risk of insolvency with requirements for capital. May
22 is the first time that the solvency ratios will be available
to the public at large.
With current interest rates near zero, insurers are finding
it increasingly tough to achieve the returns needed to pay
(Reporting by Tom Sims; Editing by Maria Sheahan)