Dutch slide shows peril of lower solvency ratios

Dutch insurers have watched their stock prices tumble after lowering expected Solvency II ratios – a sign that investors will punish thinly capitalised firms if they foresee regulatory pressure on dividends

netherlandsgovt

Europe's insurers have been guessing for some time how investors might react to the publication of Solvency II ratios, but they need speculate no longer. The market reaction to European firms' half-year results – some of which lowered expectations for these numbers – has been a mixture of ominous silence and loud disappointment, forging what looks to be an unbreakable bond between share prices and solvency ratios.

Before now equity analysts had tended to focus on cash generation and new business

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here