Posts Tagged ‘capital req’



February 23rd, 2017

Managing Volatility Key To Solvency II Transition: Part I

Posted at 1:00 AM ET

paire-eric-smEric Paire, Head of Global Partners & Strategic Advisory, EMEA

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Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies

The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter. This development is due to the double impact of market volatility and volatility within the solvency ratio itself.

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February 14th, 2017

Chart: Solvency II Ratios as of End of H1 2016

Posted at 1:00 AM ET

Chart presents (re)insurers’ Solvency II ratios compiled by Guy Carpenter for the first half of 2016. Many companies publish their solvency ratios without being required to do so, and some others actually specify target solvency ratio ranges as part of their risk appetite and financial targets. Solvency ratios are another metric for investors to use when assessing the relative financial strength of companies - and (re)insurance buyers can do the same when assessing counterparty risk.

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September 12th, 2016

Managing Volatility Key To Solvency II Transition - GC@MC Commentary

Posted at 12:00 AM ET

paire-eric-smEric Paire, Head of Global Partners & Strategic Advisory, EMEA

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Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies

The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter. This development is due to the double impact of market volatility and volatility within the solvency ratio itself.

Continue reading…

May 10th, 2016

The Value of Adopting Own Risk and Solvency Assessment (ORSA)

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts examining the benefits to (re)insurers adopting Own Risk and Solvency Assessment (ORSA) standards.

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September 14th, 2015

Solvency II Horizon: Challenges and Strategic Impact

Posted at 10:30 PM ET

frank-achtert-sm1markus-mueller-sm-2015Frank Achtert, Managing Director, and Markus Mueller, Senior Vice President, GC Strategic Advisory℠

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After a long period of discussion and many delays, the new European insurance regulatory regime, Solvency II, will commence in January 2016. The rules will be compulsory for all insurance and reinsurance companies and groups in the European Economic Area. The Solvency II rules were developed over a period of more than 15 years, and there are many reasons for the long delay. Two notable reasons are differing business models from country to country and pressure on long-term guarantee products in the private pension system created by the low interest rate environment.

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May 18th, 2015

GC Capital Ideas Videocasts

Posted at 1:00 AM ET

A key feature of GC Capital Ideas is its Videocast series. Here we review recent video posts: 

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January 28th, 2015

GC Videocast - Linking Risk Appetite to Strategy

Posted at 1:00 AM ET

In the second video in the Holistic Balance Sheet Management series, Andrew Cox, Capital Optimization, Guy Carpenter and Niall Clifford, Financial Strategy Group, Mercer, explore how companies should approach investment risk and the link between investment strategy, risk appetite and reinsurance strategy. A key focus for insurance companies should be to link their investment strategy with their risk appetite metrics. While any increase in return on capital may seem very attractive, it is important that companies ensure that the risks they are taking are in line with their risk appetite and that they are aware of their constraints, allowing them to take risks in a measured way. Investment strategy should be considered alongside regulatory requirements, as a key aspect of Solvency II relates to how well each company understands the risks in its portfolio.

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September 18th, 2012

Lloyd’s: Solvency Testing

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
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Lloyd’s has a well-developed risk management framework. A number of committees provide oversight for the Market and detail what is required of members in terms of their own risk management. Lloyd’s is required to conduct an ICA for the Market as a whole, using the normal FSA risk categories to examine risks that are not captured within syndicate ICAs. This process aims to determine the level of capital required to be held centrally that can withstand a 1-in-200 year event over a one-year time frame. The Lloyd’s ICA is an important driver for the Council in determining the optimum level of central assets. Another key driver is the expectation that the costs of mutuality will be less than 1 percent of members’ GWP across the insurance cycle. The central assets target and the level of contributions are regularly reviewed in light of the Market’s current financial position and forecasted needs.

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October 12th, 2011

GC Podcast 16 - Succeeding Under Solvency II (David Lightfoot)

Posted at 1:00 AM ET

lightfoot_podcastDavid Lightfoot, Head of GC Analytics - International
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We kick off our series of GC Capital Ideas daily stories on Solvency II with a Podcast interview with David Lightfoot. He discusses the movement of the implementation date of the regime, potential benefits and drawbacks of Solvency II to the reinsurance market, impact of Solvency II outside of Europe, Guy Carpenter’s expertise in helping clients succeed under Solvency II and Guy Carpenter’s new publication: Succeeding Under Solvency II.

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