Solvency II a poor reflection of 'actual' capital – Moody's

Moody’s joins with Fitch and S&P to criticise ‘uneconomic’ elements of directive

Moody's has joined other rating agencies in choosing largely to ignore solvency ratios under Solvency II – saying they give an uneconomic view of firms' capital positions.

In a December 10 report, the agency changed its position from March statements in which it mapped solvency ratios to its view on a firm's economic capital position – a view that influences the insurer's credit rating.

Moody's now says the credibility attached to "fully loaded" solvency ratios – which it will calculate