European Insurance Overview 2020 - Eiopa
EUROPEAN INSURANCEOVERVIEW 2020Solo undertakingsYear-end 2019https://eiopa.europa.eu/
PrintPDFISBN 978-92-9473-277-4ISBN bourg: Publications Office of the European Union, 2020 EIOPA, 2020Reproduction is authorised provided the source is acknowledged.For any use or reproduction of photos or other material that is not under the EIOPA copyright, permission must besought directly from the copyright holders.
EUROPEAN INSURANCEOVERVIEW 2020Solo undertakingsYear-end 2019
EUROPE AN INSUR ANCE OVERVIE W mBGBulgariaCYCyprusCZCzech ceESSpainGRGreeceHRLoss absorbing capacity of deferred taxassetsLTGLong term guaranteesMCRMinimum capital requirementEOFEligible Own funds to meet the SCRSCRSolvency capital requirementNon-Life lines of businessAssistanceAssistanceC&SCredit and Suretyship insuranceCasualty ReinsCasualty non-proportional reinsuranceFire PropFire and other damage to propertyinsuranceCroatiaGen LiabilityGeneral liability insuranceHUHungaryHealth ReinsHealth non-proportional reinsuranceISIcelandInc ProtectIncome protection insuranceIEIrelandLegal ExpLegal expenses insuranceITItalyMATMarine, aviation and transport insuranceLVLatviaMAT ReinsMarine, aviation and transport reinsuranceLILiechtensteinMed ExpMedical expense insuranceLTLithuaniaMisc FinMiscellaneous financial lossLULuxembourgMotor LiabMotor vehicle liability insuranceMTMaltaOther MotorOther motor insuranceNLNetherlandsProperty ReinsProperty non-proportional reinsuranceNONorwayWorkers CompWorkers’ compensation insurancePLPolandPTPortugalLife lines of businessRORomaniaAnnuities, healthSKSlovakiaAnnuities stemming from non-lifeinsurance contracts and relating tohealth insurance obligationsSISloveniaAnnuities, non-healthSESwedenUKUnited KingdomAnnuities stemming from non-lifeinsurance contracts and relating toinsurance obligations other thanhealth insurance obligationsHealth InsHealth insuranceHealth ReinsHealth reinsuranceIL & ULIndex-linked and unit-linked insuranceIns with ppInsurance with profit participationLife ReinsLife reinsuranceOther LifeOther life insuranceGeneral2LACDTCICComplementary Identification CodeCQSCredit Quality StepEPIFPExpected profit in future premiumsEOAExcess of assets over liabilitiesGWPGross written premiums
SOLO UNDERTAKINGS — YE AR-END 2019CONTENTSABBREVIATIONS21.INTRODUCTION42.LIFE MARKET OVERVIEW52.1. Life Lines of Business72.2 Life – EEA Premium breakdown83.9NON-LIFE MARKET OVERVIEW3.2 Non-Life Lines of Business143.3 Non-Life – EEA Premium breakdown144.16SOLVENCY & CAPITALISATION4.1 SCR and MCR distribution164.2 BSCR composition – Standard formula users194.5 Tiering of own funds204.4 Impact of loss absorbing capacity of deferred taxes (LAC DT) and expectedprofits included in future premiums (EPIFP)214.5 SCR and MCR coverage234.6 Long Term Guarantees and Transitional Measures245.INVESTMENTS265.1 Asset type breakdown275.2 Credit Quality285.3 Location of Investments295.4 Use of Derivatives305.5 Sector distribution313
EUROPE AN INSUR ANCE OVERVIE W 20201. INTRODUCTIONThe Annual European Insurance Overview is published by EIOPA as an extension of itsstatistical services in order to provide an easy-to-use and accessible overview of the European (re)insurance sector. The report is based on annually reported Solvency II information. This ensures that the data has a high coverage in all countries and is reported ina consistent manner across the EEA.The report is objective, factual and data driven and does not contain analysis or policymessages. All indicators used in the report are calculated from the reported data fromundertakings. While the topics and indicators covered is intended to be relatively stableover time, the report will be adapted to respond to changes in micro prudential andsupervisory priorities. It will therefore support the supervisory community and industrywith highly relevant and easily-accessible data at European level. This report is basedon Annual reporting for 2019 and as such UK data are included in any EEA figures. Onlycountries with more than 3 undertakings will be displayed in charts with distributions.The report is published with all charts data available for download in separate excel files.4
SOLO UNDERTAKINGS — YE AR-END 20192. LIFE MARKET OVERVIEWFor the majority of EEA countries (19) GWP increased in 2019. The Life market remainslargely dominated by the Index-linked and Unit-linked insurance & Insurance with profitparticipation lines of business.Figure 1: Concentration per country100%-EE, IS, LT & LV all show a 3undertaking market concentrationabove 80%. This is a result of thesmall number of companies in thesecountries.90%80%70%-Overall, DE remains as the leastconcentrated country followed byIT, IE & EISITLILTLULVMTNLNOPLPTROSESISKUK0%10 Undertakings5 Undertakings3 UndertakingsThe concentration indicator is a measure of the market share of the national GWP that the 3, 5, and 10 biggest premiumwriters account for.300150%260130%220110%18090%LV have the largest increase year onyear at 147%; with FI reporting thesecond largest increase at 38%.14070%LT have the largest decreaseat -24%.10050%6030%2010%-20-10%-60-30%-100-50%UK, FR, DE & IT continue to be thelargest Life RCZHUSKSIROHRCYEEBGLTLVISBillionsFigure 2: Aggregate GWP growth per countryLife GWP 2018Life GWP 2019DeltaThe aggregated GWP for both 2018 and 2019 are displayed per country (left axis). “Delta” displays the increase/decrease in % GWP of this year compared to last on the right axis.5
EUROPE AN INSUR ANCE OVERVIE W 2020Figure 3: Distribution of GWP growth per country140%5 countries (AT, GR, MT, NL & UK)had a reduction in GWP at medianlevel with UK’s contraction of 4%being the %The year on year growth in GWP is the increase or decrease in premiums written this year compared to last. The chartshows interquartile range and medianFigure 4: Share of reinsurance per LOB100%Both Annuities LOBs aresubstantially more reinsured thanany other Life line of business.‘IL&UL’ is the least ealthAnnuities,non-healthHealthinsuranceIL & ULIns with PPOther lifeinsuranceDefined as the percentage of GWP ceded to reinsurers. The chart shows interquartile range and median.6
SOLO UNDERTAKINGS — YE AR-END 2019Figure 5: Year on year growth in GWP by line of business40%30%Only 3 out of 8 line of business(‘Annuities non-health’, ‘Health Ins’& ‘Other life’) display an increase atthe median level.20%No LOB has decreased by morethan 2% at a median level.10%0%-10%-20%Annuities, Annuities, Health Inshealth non-healthHealthReinsIL & UL Ins with PP Life ReinsOtherlifeThe year on year growth in GWP is defined as the total GWP for this year divided by the same figure for the precedingyear, minus one. The chart shows interquartile range and median2.1. LIFE LINES OF BUSINESSFigure 6: Life – Line of business split per country based on GWPTotal SEEDKDECZCYBGBEAT0%10%20%30%40%50%60%70%Health InsIns with PPIL & ULOther lifeAnnuities, healthAnnuities, non-healthHealth ReinsLife Reins- At an EEA level, the ‘Ins withPP’ and ‘IL & UL’lines of businessaccount for 70% of GWP.- 17 countries have a single line ofbusiness accounting for 50% ormore of GWP.In MT the life market is dominatedby reinsurance LOBs80%The volume of GWP by line of business for each country expressed as a percentage of total GWP.90%100%7
EUROPE AN INSUR ANCE OVERVIE W 20202.2 LIFE – EEA PREMIUM BREAKDOWNFigure 7: Life – Gross written premiums divided by GDP- LU( 10,500) & IE( 5,000) havethe highest proportion of Life GWPper Capita.The location of underwriting for any Life business written by all undertaking and their EEA branches, including by FOEand FPS, within the EEA. GDP figures sourced from Eurostat.- IL & UL and Ins with PP are thedominant lines of business in thelife market accounting for almost70% of premiums.Figure 8: Life – Lines of Business by premium volume- Annuities, health( 1%) andAnnuities, non-health( 1%) are notvisible in the chart.Other life13%IL & UL36%MotorLife9%Ins with PP33%Health Ins7%Health1%Direct BusinessReinsuranceThe total life market split into lines of business by premium volume. Split between direct business and reinsurancedisplayed.8
SOLO UNDERTAKINGS — YE AR-END 20193. NON-LIFE MARKET OVERVIEWNon-Life GWP has increased for the vast majority of countries (27) in 2019. More than50% of the Non-life market is made up of General Liability, Motor Vehicle Liability, Medical Expenses insurances & Fire and other damage to property insurance lines of business.Figure 9: Concentration per country100%IS, LI, LV & LT show a 3 undertakingmarket concentration above 80%.Such high levels of concentrationare attributable to the relatively fewcompanies in each country.90%80%The least concentrated market is FRfollowed by DE, CY, GR and HUIEISITLILTLULVMTNLNOPLPTROSESISKUK0%10 Undertakings5 Undertakings3 UndertakingsThe concentration indicator is a measure of the market share of the national GWP that the 3, 5, and 10 biggest premiumwriters account for.BillionsFigure 10: Aggregate GWP growth per 030%4020%2010%00%DE, FR & UK are the largest NonLife underwriters.Growth of 77% is observed for LU.BE at 41% have the second largestincrease.UK, CY & FI are the only countriesto display decreases in premiumat -9%, -3% and -1% IMTLIBGSIGRHUROSKHREECYISLTLV-20Non-Life GWP 2018Non-Life GWP 2019DeltaThe aggregated GWP for both 2018 and 2019 are displayed per country. Delta displays the increase/decrease in % GWPof this year compared to last.9
EUROPE AN INSUR ANCE OVERVIE W 2020Figure 11: Distribution of GWP growth per countryMedian growth of 15% is observedfor CZ & HU. HR, PL & SI showa median value above 10%.Only LI & UK show a decrease inGWP volume at a median level thisyear with a decline of 2% & ESISKUK-15%The year on year growth in GWP is the increase or decrease in premiums written this year compared to last. Theinterquartile range is displayed. The chart shows interquartile range and medianFigure 12: Year on year growth in GWP per line of businessOnly Casualty Reins displaysa decrease in premium volume ata median level of 1%.The biggest increase is observed inAssistance & Other Motor.MAT Reins has by far the largestinterquartile range of yReinsWorkersCompMotor LiabMisc FinMed ExpMAT ReinsMATLegal ExpInc protectGenliabilityHealthReinsFire PropCasualtyReinsC&S-50%Assistance-40%The year on year growth in GWP is defined as the total GWP for this year divided by the same figure for the precedingyear, minus one; for each line of business. The chart shows interquartile range and median10
SOLO UNDERTAKINGS — YE AR-END 2019Figure 13: Combined ratio per country160%Only CY, IS, NO, RO & UK displaymedian combined ratio values at orabove 100%. BE, ES, FR, HR, LI, LT &SK all above 95%.140%HU, IE, LU & MT report the lowestmedian values at between 79%and HUIEISITLILTLULVMTNLNOPLPTROSESISKUK0%The Combined Ratio is defined as the sum of claims and expenses divided by premiums earned. The chart showsinterquartile range and median.Figure 14: Claims ratio per countryIS reports the highest medianclaims ratio at 79% whilst GR, HU &PL report the lowest at he claims ratio is defined as the claims paid divided by premiums earned. The chart shows interquartile range andmedian.11
EUROPE AN INSUR ANCE OVERVIE W 2020Figure 15: Expense ratio per countryLU & IS report a median expenseratio below 20%, with LU as lowas 12%.More than half of countries reporta median expense ratio between30% & he expense ratio is defined as the expenses divided by premiums earned. The chart shows interquartile range andmedian.Figure 16: Share of reinsurance per LOB‘Credit & Suretyship’ LOB displaysthe highest median value atjust under 45% and the largestinterquartile range.Inc protect, Legal exp, Med exp,Other Motor and Workers’ Comp alldisplay median values below 10%.80%70%60%50%40%30%20%10%Defined as the percentage of GWP ceded to reinsurers. The chart shows interquartile range and median.12Workers CompOther motorMotor LiabMisc FinMed ExpMATLegal ExpInc protectGen liabilityFire PropC&SAssistance0%
SOLO UNDERTAKINGS — YE AR-END 2019Figure 17: Combined ratio per line of business200%‘MAT Reins’ has the lowest mediancombined ratio value at just above50%, followed by Property andHealth Reinsurance LOB.150%‘Motor Liab’ is the only line ofbusiness with a median value above100%. ‘Other Motor’ & ‘Med Exp’ sitjust below 100%.100%50%0%-50%-100%Workers CompProperty ReinsOther MotorMotor LiabMisc FinMed ExpMAT ReinsMATLegal ExpInc protectHealth ReinsGen liabilityFire PropCasualty ReinsC&SAssistance-150%Defined as sum of claims and expenses divided by premiums earned for each line of business. The chart showsinterquartile range and median.13
EUROPE AN INSUR ANCE OVERVIE W 20203.2 NON-LIFE LINES OF BUSINESSFigure 18: Non-Life – Line of business split per country based on GWP- At EEA level the most dominantNon-life line of business is fire andother damage to property, followedby medical expense and motorvehicle liability.- NL is the most concentrated Nonlife market with medical expenseinsurance accounting for 80%of GWP.Total LEEDKDECZCYBGBEAT0%AssistanceMAT10%C&SMed Exp20%30%Fire PropMisc Fin40%50%Gen liabilityMotor Liab60%70%80%Inc protectOther Motor90%100%Legal ExpWorkers Comp3.3 NON-LIFE – EEA PREMIUM BREAKDOWNFigure 19: Non-Life – EEA Gross Written premium- NL( 7.5%) and MT( 6%) have thehighest GWP/GDP ratio.The location of underwriting for any Non-life business written by all undertaking and their EEA branches, including byFOE and FPS, within the EEA.14
SOLO UNDERTAKINGS — YE AR-END 2019Figure 20: Non-Life – Lines of Business by premium volumeMed Exp17%Motor Liab12%Other Motor9%Inc protect5%Fire Prop17%Gen liability8%Fire Prop6%Gen Other MATliability Motor 1%1%2%Misc C&SC&SFin 2% 2% Med Exp1%2%MAT3%MotorLiab3%Legal Exp2%Assistance1%- Non-Prop Health reinsurance(0.2%) and Prop Worker’s Compreinsurance (0.1%) are not visible inthe chart.MiscFin 0%Inc protect1%Property3%- ‘Med Exp’, ‘Fire Prop’, ‘Motor Liab’& ‘Other Motor’ account for over55% of business in the non-lifemarket.Legal Exp2%Casualty1%MAT0%Direct nsuranceThe total non-life market split into lines of business by premium volume. Split between direct business, proportionalreinsurance and non-proportional reinsurance displayed.15
EUROPE AN INSUR ANCE OVERVIE W 20204. SOLVENCY & CAPITALISATIONThe majority of countries (17 out of 31), report a median SCR ratio of over 200%;and for allcountries a median MCR above 250% is reported. Market risk is the most dominant riskmodule accounting for between 25% and 80% of BSCR for all countries. For the majorityof countries(26 out of 31), Tier 1 – unrestricted capital accounts for 90% or more of OF.4.1 SCR AND MCR DISTRIBUTIONFigure 21: SCR ratio full distributions per country- For most countries the majorityof undertakings are concentratedwithin the 100-200% range witha long tail to the higher coverageratios.- At EEA level we can see that thevast majority of undertakings fallbetween the 100-300% range.The chart above shows the distribution of SCR ratios for each country; that is the total eligible own funds divided bythe Solvencycapital requirement for each country. Countries with more than 55 undertakings displayed on their ownline.16
SOLO UNDERTAKINGS — YE AR-END 2019Figure 22: MCR ratio full distributions per country- Distributions of MCR ratios arefar more erratic than for SCR withsome undertakings maintainingextremely high ratios.- At EEA level this effect issmoothed showing a peakconcentration between 300-500%.The chart above shows the distribution of MCR ratios for each country; that is the total eligible own funds divided bythe Minimum capital requirement for each country. Countries with more than 55 undertakings displayed on their ownline.Figure 23: SCR distributions by company type400%- For all company types a medianvalue above 200% is observed and25th percentile value above kingsLife undertak- Non-Life undertakingsReinsuranceundertakingsThe following figures display the SCR coverage ratios by company type and below, the SCR & MCR distributions bycountry. The charts show interquartile range and median.17
EUROPE AN INSUR ANCE OVERVIE W 2020Figure 24: SCR coverage interquartile range- DE displays the highest SCRcoverage distributions with medianvalues of 300% and lower quartilevalues above 200%.- LV is the only country reportinga median value of under 150%.- The vast majority of countries (27)have a median value between 150%& SISKUK0%Figure 25: MCR coverage interquartile range- FI have the highest median MCRcoverage value at 800%- BG & LV are the only countrieswith median values below IFRGRHRHUIEISITLILTLULVMTNLNOPLPTROSESISKUK0%18
SOLO UNDERTAKINGS — YE AR-END 20194.2 BSCR COMPOSITION – STANDARD FORMULAUSERSFigure 26: BSCR composition by module for standard formula users by business type100%80%60%40%20%0%-20%Composite undertakings Life undertakings Non-Life undertakingsNon-life underwriting riskMarket riskHealth underwriting riskDiversificationLife underwriting riskReinsuranceundertakingsIntangible asset riskCounterparty default riskThe aggregated value of the Solvency Risk Modules for Standard Formula users by company type.Figure 27: BSCR composition by module for standard formula users by FIESEEDKDECZCYBGBEAT-40%The most prominent nonunderwriting related risk is marketrisk accounting for between 20%and 55% of BSCR.Diversification varies between 15% for some countries up to 25% for others. SK & HU have thehighest value whilst DK, SE & UKhave the lowest.-20%DiversificationLife underwriting risk0%20%Counterparty default riskMarket risk40%60%80%Health underwriting riskNon-life underwriting risk100%Intangibleasset riskThe aggregated value of the Solvency Risk Modules for Standard Formula users by country. Diversification representsthe benefits in capital required after aggregating the risk modules and submodules with the prescribed standardcorrelation matrixes.19
EUROPE AN INSUR ANCE OVERVIE W 20204.5 TIERING OF OWN FUNDSFigure 28: Tiering of own funds EEA by business typeReinsurance undertakingsNon-Life undertakingsLife undertakingsComposite Undertakings70%Tier 1 - Unrestricted80%Tier 1 - RestrictedTier 290%100%Tier 3Shows the breakdown of eligible own funds to meet the SCR into the tiers of own funds which it consists of.Figure 29: Tiering of own funds by country- CY, EE, HR, HU, SE & SK all haveover 99% Tier 1 unrestricted capitalwithin their own funds.- 5 countries have a proportion ofTier 1 – unrestricted own fundsbelow 90% with NO lowest at 82%.- GR have the highest proportion ofTier 3 own funds at EDKDECZCYBGBEAT70%Tier 1 - Unrestricted80%Tier 1 - Restricted90%Tier 2Tier 3Shows the breakdown of eligible own funds to meet the SCR into the tiers of own funds which it consists of.20100%
SOLO UNDERTAKINGS — YE AR-END 20194.4 IMPACT OF LOSS ABSORBING CAPACITY OFDEFERRED TAXES (LAC DT) AND EXPECTED PROFITSINCLUDED IN FUTURE PREMIUMS (EPIFP)Figure 30: Impact of LAC DT by business type0%The loss absorbing capacity ofdeferred tax assets has the highestimpact for reinsurance & ingsNon-LifeundertakingsLoss absorbing capacity of deferred tax assets expressed as a percentage of the eligible own funds to meet theSolvency Capital Requirement by company type. The chart shows interquartile range and medianFigure 31: Impact of LAC DT by country0%- At a country level, largedifferences can be observed in theimpact of LAC DT.-5%- NO have the highest impact at12.5%.-10%- Only countries with 3 or moreentities displayed.-15%-20%-25%-30%FRIELUMTNOUK21
EUROPE AN INSUR ANCE OVERVIE W 2020Figure 32: Impact of EPIFP by business type25%- EPIFP has the highest impact onEOF for composite undertakings at 4.8%, followed by 3.1% for dertakingsThe expected profit in future premiums expressed as a percentage off the eligible own funds to meet the SolvencyCapital Requirement by country. Standard formula users only. The chart shows interquartile range and medianFigure 33: Impact of EPIFP by country100%- The impact of EPIFP on EOF ata country level has the largestimpact for SK with a median valueof SFIFRHRHUIEISITLILTLULVMTNLNOPLPTROSESISKUK0%The expected profit in future premiums expressed as a percentage off the eligible own funds to meet the SolvencyCapital Requirement by country. The chart shows interquartile range and median22
SOLO UNDERTAKINGS — YE AR-END 20194.5 SCR AND MCR COVERAGEFigure 34: SCR and MCR Ratio, by business typeNon-LifeLife100%0.00% 0.19%1.74%0.00%0.01% 0.00% 0.00%150%100%0.00% 0.00%SCR Ratio0.01% 2.67% 97.26%0.00% 0.50% 1.76%0.00% 0.06% 0.00%0.00% 0.00% 0.00%0.00% 0.00% 0.00%100%0.00% 0.32% 1.28%0.00% 0.00% 0.00%100%0.00% 0.00% 0.00%0.76% 8.56% 88.41%MCR Ratio13.74% 83.39%150%150%0.00%0.20% 0.00% 0.20%Composite150%MCR Ratio1.28%0.01% 0.01% 0.03%SCR RatioReinsurance0.02% 4.79% 95.18%0.20% 0.54% 3.16%0.02% 0.00% 0.00%SCR Ratio100%0.34% 15.48% 79.88%0.08% 14.55% 85.30%100%0.19% 0.00%100%0.00% 0.00% 0.00%- Composite & reinsuranceundertakings are the best coveredtype of undertaking with 95% ofcompanies, in terms of total assets,above 150% for each metric.150%150%0.00% 13.73% 84.14%0.00% 22.84% 77.15%MCR Ratio150%150%MCR Ratio100%SCR RatioThe figures above display the capitalisation of companies when split out into different groupings. The thresholds areset at 100% and 150% coverage for both SCR and MCR. The green area denotes companies who are above 150% ineach, yellow shows companies between 100% and 150% in one or both categories, and the red areas denote a companywith less than 100% in one or both categories.The first figure in each cell is the share in terms of number of companies, the second bold figure is in terms of totalassets.23
EUROPE AN INSUR ANCE OVERVIE W 20204.6 LONG TERM GUARANTEES AND TRANSITIONALMEASURESFigure 35: SCR ratio with & without Transitionals, LTG – all undertakings350%- UK show the highest combineddependence on Transitionals andLong Term Guarantee measureswith an impact of 23% and 67%respectively in terms of SCR ratio.- Transitionals have the highestimpact for PT with a 36% dropin SCR ratio whilst Long TermGuarantee measures most impactUK SCR ratios by RHRHUIEISITLILTLULVMTNLNOPLPTROSESISKUK0%SCR RatioSCR Ratio w/o TransSCR Ratio w/o LTGThe SCR ratio calculated with & without the impact of transitionals and long term guarantees, respectively. Sampleincludes all undertakings irrespective of whether or not they use any of the measures.Figure 36: SCR ratio with & without Transitionals, LTG – For undertakings that use atleast one LIITIEGRHUFIFRESDEDKBECZSCR Ratio w/o TransOtherSCR RatioBGAT0%SCR Ratio w/o LTGThe SCR ratio calculated with & without the impact of transitionals and long term guarantee measures, respectively.Sample includes undertakings who use at least one of the measures.24
SOLO UNDERTAKINGS — YE AR-END 2019Figure 37: Impact of transitionals and LTG measures per country on Eligible own fundsto meet the SCR.-20%-25%SKHU-15%DKDE -10%Other0%0%BE-5% NOAT-5%GRFR-10%-15%-20%-25%-30%UK-35%The impact of transitionals and impact of long term guarantee measures are calculated as a percentage of the Eligibleown funds to meet the SCR. Sample includes life undertakings who use at least one of the measures.-6%-5%-4%-3%-2%-1%IE 0%0%LUGRATLIBENLITBGFI-1%CZES-2%-3%-4%-5%NO-6%- UK has the highest impact onEOF for both measures. The LTGmeasures have an impact of 31% onEOF and Transitional measures animpact of 19%.- After the UK, Highest impact onEOF for Transitional measures is SKwith a value of 18%.- After the UK, Highest impact onEOF for LTG measures is FR witha value of 7%.25
EUROPE AN INSUR ANCE OVERVIE W 20205. INVESTMENTSIn terms of insurance sector asset types (by CIC codes), EEA investments are almost 60%attributed to Government and Corporate Bonds (CIC 1 & 2).26
SOLO UNDERTAKINGS — YE AR-END 20195.1ASSET TYPE BREAKDOWNFigure 38: Asset type allocation of reported assets (by CIC codes)Governmentbonds1234567TotalEquityInvestment gsCollateralisedsecuritiesCash anddepositsMortgagesand CorporatebondsCommonequityEquity fundsEquity riskEquity riskCashUncollateralizedloans madeProperty(office Supra-nationalbondsConvertiblebondsEquity of realestate relatedcorporationDebt fundsInterestrate riskInterestrate risk2.1%0.1%0.0%2.2%0.0%0.0%TransferableLoans madedeposits (cash collateralizedequivalents)with securities0.4%Property(residential)0.3%Other depositsshort termCurrency risk (less than orequal toone year)RegionalgovernmentbondsCommercialpaperEquity rightsMoney marketfundsCurrency risk0.4%0.3%0.1%1.1%0.1%0.3%0.2%2.8%0.0%Credit riskCredit riskOther depositswith termlonger thanone overnmentbondsMoney marketAsset allocationPreferred equityinstrumentsfundsProperty(for own use)0.4%0.5%1.8%0.0%0.1%2.2%0.3%0.1%Treasury bondsHybrid bondsReal estatefundsReal estateriskReal estateriskDeposits tocedantsOthercollateralizedloans madePlant andequipment(for own use)0.0%1.2%0.4%0.0%0.0%0.1%Covered bondCommoncovered ns Covered bondssubject tospecific lawPrivate equityfundsCatastropheand WeatherriskCatastropheand tructurefundsMortality riskMortality risk89Corporatebonds- Almost 60% ofassets fall into theCIC categories:Government bonds (1)and Corporate bonds(2). Investment fundscollective investmentundertakings (4)and Equity (3) followwith 20% and 13%reported respectively.- Within themost prevalentCIC categories,Government &Corporate bonds, wecan see that the CICsubcategories CentralGovernment bonds(1.1) and Corporatebonds (2.1) accountfor 22% and CIC Code prevalence amongst reported assets. Non index-linked/unit-linked.The Complementary Identification Code (CIC) is a set of industry standard codes for identifying the specific type offinancial instrument under Solvency II. In the visualisation below the prevalence of instrument type is displayed.27
EUROPE AN INSUR ANCE OVERVIE W 20205.2 CREDIT QUALITYFigure 39: Credit Quality Step allocation of reported assets- CQS 3 is the predominant ratingfor the most countries.- CQS 0 is predominant for twocountries, DK & SE.- No Rating Available is mostprevalent in EDKDECZCYBGBEAT0%10%20%Credit quality step 0Credit quality step 430%40%Credit quality step 1Credit quality step 550%60%70%Credit quality step 2Credit quality step 680%90%100%Credit quality step 3No rating availableCredit Quality Step reported for relevant assets (CIC: 1, 2, 5, 6). Allocation by country.Standard Formula users only. Credit Quality Step (CQS) is a standardised scale of credit quality with mappings to thecredit ratings of the largest ratings agencies. CQS 0-3 correspond to investment grade assets with 4-6 being noninvestment grade.28
SOLO UNDERTAKINGS — YE AR-END 20195.3 LOCATION OF INVESTMENTSFigure 40: Issuer country for EU Government bond holdingsThe location of investment for all Government Bonds, excluding those held for unit-linked or index-linked portfolios,i.e. where CIC main category is equal to 1.Figure 41: Issuer country for EU Corporate bond holdingsThe location of investment for all Corporate Bonds, excluding those held for unit-linked or index-linked portfolios, i.e.where CIC main category is 2.Figure 42: Issuer country for EU Equity holdings- Of those government bonds heldby (re)insurance undertakings andissued in Europe, FR and IT togetheraccount for 45%. The top 5 issuersof government bonds (FR, DE, IT,ES & UK) together amount to 75%of the total.- Of those corporate bonds heldby (re)insurance undertakingsand issued in Europe, FR and UKtogether account for 43%.- Of the equity held by (re)insurance undertakings and issuedin Europe, FR and DE togetheraccount
insurance Gen Liability General liability insurance Health Reins Health non-proportional reinsurance Inc Protect Income protection insurance Legal Exp Legal expenses insurance MAT Marine, aviation and transport insurance MAT Reins Marine, aviation and transport reinsurance Med Exp Medical expense insurance Misc Fin Miscellaneous financial loss
the review of specific items in the Solvency II Delegated Regulation (Public Consultation No. 17/004). 2. After having analysed the comments from stakeholders, EIOPA has modified its advice where appropriate. EIOPA has also provided a summary of the main comments received during this public consultation. EIOPA answered each comment received.
EIOPA Explanatory notes on reporting templates Variation Analysis templates 1.1. EIOPA has received in the last months a number of Q&A addressing the reporting of Variation Analysis templates (S.29.01 to S.29.04). The Q&A received covered most of the templates and put into question how the templates are to be interpreted in many areas.
3.7. The European Chemicals Agency (ECHA) 108 3.8. European Insurance and Occupational Pensions Authority (EIOPA) 115 3.9. European Institute of Innovation and Technology (EIT) 121 3.10. European Maritime Safety Agency (EMSA) 127 3.11. European Union Agency for Cybersecurity (ENISA) 134 3.12. European Union Agency for Railways (ERA) 143 3.13.
European Commission indicated that Switzerland should be assessed for equivalence under articles 172, 227 and 260. EIOPA was invited to provide its advice, by the end of September 2011, following full consultation. 3. In accordance with the methodology for equivalence assessments, which can be
Consultation paper overview and next steps This Consultation Paper constitutes a follow-up to EIOPA’s Opinion on Sustainability within Solvency II4, which recommended that (re)insurance undertakings consider climate risks beyond the one-year time horizon through the system of governance, risk-management system and their ORSA. EIOPA considered that further work would be needed to define a .
The report contains a comprehensive and thorough account of the activities carried out by EIOPA in the implementation of its mandate and programme of work during 2020. EIOPA has met its obligations under Article 48(1), providing a detailed account of the results achieved in relation to the objectives set in the Annual Work Programme 2020,
assessment should be presented in easily understandable language respecting current legal terminology at European level." 1.2The presentation of the advice should enable all stakeholders to understand the overall impact of the options presented by EIOPA. 1.3For that purpose, EIOPA has developed the current holistic impact assessment which
Quality level according to API 6A - PSL 1, 2 or 3. 1. In the trunnion mounted design configuration, the ball is supported by bearing, held in position by the valve closures. This configuration allows to discharge any side loads on the valve body, enabling a smoother operation of the ball, minimizing the operating torque and reducing seat seal wear. 2. Anti-Blow Out stem design. 3. Standard .
