Ivass Statistical Bulletin: Solvency II Indicators

IVASS has launched a new series of statistical bulletins aimed at reporting some relevant trends in the Italian insurance market.

The first bulletin focuses on the main indicators set out in the Solvency II.

In particular, the most relevant information included into the first Bulletin are that:

  • The average solvency ratio fell down to 247% (-13 percentage points) in the first three quarters of 2022. The decrease was greater for life undertakings (-32 percentage points) than for non-life undertakings (-5 percentage points). The indicator was stable for non-life undertakings.
  • The funds of the high-quality eligible capital – Tier 1 – are predominant in all segments (more than 88%), while Tier 3 funds is less than 0.3% for life insurance and multi-branch, and 2% for non-life insurance undertakings.
  • Due to the increment of the interest rates since March 2022 both assets and liabilities in the solvency balance sheet have  been reduced.
  • For government bonds, the investment in securities rated A or higher increased. The composition of corporate bonds remained stable.

From 2019 to 2021, there was a reduction of with-profit life insurance products while the unit-linked ones increased. However, in the first three quarters of 2022, life business, both profit and unit-linked, has collapsed. On the contrary, Non-life business has gradually rised, with a slight decrease in motor liability.