27 firms below 100% SCR ratioAnalysis of over 2,000 solo European insurance firms subject to Solvency II public disclosures, reveals that 27 firms breached their SCR ratio as of 31 December 2016. Raising the threshold to 120% expands the sample to 130 insurers with a ratio close to, or breaching, the limit. The chart below shows the distribution of the firms in the sample. Firms that have breached their SCR only are marked in pink, while those that have also breached the MCR are in red. 13 firms breached their MCR ratio and 5 firms have both a negative SCR as well as a negative MCR ratio. The linear trend line indicates a correlation between the SCR and MCR ratios.
Sample dominated by non life insurance firmsThe geographic spread of the sample is dotted across Europe with pockets concentrated in the UK (22 firms), Gibraltar (15 firms), Ireland (13 firms) and Italy (12 firms). The majority of the firms in the sample (75 firms) are non-life insurers. Only 5 firms use either an internal model or partial internal model (unchanged from earlier sample). Throughout the sample 33 firms apply a total of 44 LTG measures (a number of firms use more than one measure). The Volatility Adjustment is used by 29 firms, 11 use some form of transitional and only 4 firms use the Matching Adjustment. The figures are in keeping with the popularity of the Volatility Adjustment across Europe.
Improvements in SCR and MCR ratiosAt the time of publication, 3 firms had already released their 2017 SFCRs and QRTs:
|Euroguard Insurance Company PCC Limited||213800V2IS42UGIQHX49||65b0d7ff-53d5-421c-ae09-70f383d41188|
|Evolution Insurance Company Limited||2138008P6LTB2RWKB804||ddf35d9d-b38b-4bf6-960b-fb84ce5c4fb1|
|Municipal Mutual Insurance Limited||213800Q4LJELSR6V9Y46||c66f9bfc-f280-4ab5-a656-196af1bc3973|