Generali’s solvency ratio savaged by Covid-19 turmoil
Italian sovereign exposures could force capital gauge even lower
A collapse in interest rates, plummeting asset valuations and regulatory pressures all conspired to depress Italian insurer Generali’s capital ratio over the first five months of the year.
Its Solvency II ratio, eligible own-funds divided by its solvency capital requirement (SCR), fell from 224% at end-2019 to around 190% as of May 19, executives at the insurer said on May 21. It’s the lowest the ratio has been since mid-2017.
The insurer said March’s market turmoil was responsible for 23
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