A.M. Best Briefing: A.M. Best Explains Impact of New Solvency II Disclosure Rules on European Insurers

LONDON--()--As part of the Solvency II regime, single entity (solo) insurers were required to disclose publicly a solvency and financial condition report (SFCR) on 20 May 2017. Group entities have a different deadline of 1 July 2017 for SFCRs. The information provides an insight into companies’ financials as at 31 December 2016. SFCR quantitative data is prescribed by the European Insurance and Occupational Pensions Authority (EIOPA), who have also provided the format for how the data should be presented.

A.M. Best has begun to capture the Solvency II disclosures for European insurers, and in a new briefing, comments on some important aspects of the new disclosures. The briefing, titled “A.M. Best Explains Impact of New Solvency II Disclosure Rules on European Insurers,” comments on what information will be included and how it compares with previous public regulatory disclosures. It also outlines the extent to which ratios are incorporated into A.M. Best’s analysis.

Quantitative disclosures include a balance sheet and by-line tables for premiums, expenses and incurred claims. The effect of transitional measures on technical provisions, the risk margin and amounts related to the long-term guarantee package (matching adjustment and volatility adjustment) will be disclosed. Companies also will have to provide details on their own funds and the composition of their Solvency Capital Requirement (SCR).

Anthony Silverman, senior financial analyst, said: “A.M. Best believes that most companies will maintain regulatory SCR ratios well in excess of 100%. However, A.M. Best will ascertain the relevance or otherwise of disclosures to its own assessment of the underlying economic level of solvency. It is not anticipated there will be any direct impact.”

To access a complimentary copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=261800.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries.

ALL RIGHTS RESERVED.

Contacts

A.M. Best
Anthony Silverman, +(44) 20 7397 0264
Senior Financial Analyst
anthony.silverman@ambest.com
or
Yvette Essen, +(44) 20 7397 0322
Director, Research & Communications - Europe & Emerging Markets
yvette.essen@ambest.com
or
Catherine Thomas, +(44) 20 7397 0281
Senior Director, Analytics
catherine.thomas@ambest.com
or
Edem Kuenyehia, +(44) 20 7397 0280
Director, Market Development & Communications
edem.kuenyehia@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Anthony Silverman, +(44) 20 7397 0264
Senior Financial Analyst
anthony.silverman@ambest.com
or
Yvette Essen, +(44) 20 7397 0322
Director, Research & Communications - Europe & Emerging Markets
yvette.essen@ambest.com
or
Catherine Thomas, +(44) 20 7397 0281
Senior Director, Analytics
catherine.thomas@ambest.com
or
Edem Kuenyehia, +(44) 20 7397 0280
Director, Market Development & Communications
edem.kuenyehia@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com