Comparison of the distribution of group SCR ratios of European insurance groups between 2016 to 2023 reveals a steady rise in solvency levels.
Solvency II Wire Data analysed a sample of 152 insurance groups that reported ratios across all years. The bulk of the group SCR ratios are concentrated between 100% – 300% (see chart below).
In 2016 the two largest brackets were 100%-199% (76 firms) and 200%-299% (39 firms), while in 2023 several firms shifted to higher ratios with only 51 firms in the former bracket and as many as 70 in the latter.
Yet in both years close to 80% of firms reported ratios below 300%.
Four firms reported a group SCR ratio below 100% in 2016 and have since recovered.
Group SCR ratios concentration between 170% – 220%
Analysis of 241 insurance groups in 2023, making up the bulk of the market, shows a similar concetration of ratios below 300% (see below), albeit with an almost equal distribution between the two largest brackets.
Breaking down the sample into brackets of 10% reveals a broad concentration of ratios between 170% to 220%.
European Group MCR ratios
Analysis of the group MCR ratios of the sample of 150 insurance groups shows that in 2016 ratios were concntrated in the range of 200% – 600%, whereas by 2023 a wider distribution occures towards the higher MCR ratio range.
The MCR ratio (Minimum Capital Requirement) is the lower of the two solvency ratios calculated under Solvency II. A breach of the MCR ratio will trigger regulatory action.
Further 2023 SFCR analysis from Solvency II Wire Data
UK Solvency ratio distribution 2016 – 2023
Insurance asset allocation of Europe’s largest groups 2016 – 2023
SFCR 2023: Solvency II template S.25.05 partial and full internal model reporting
European insurers that halved their solvency ratio in 2023
AXA Group reports highest Solvency II ratio to date
More information about the data is available to premium subscribers of Solvency II Wire Data and subscribes to Solvency II Wire‘s exclusive SFCR Spotlight mailing list (subscribe for free here).
Datasets available on Solvency II Wire Data
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- Swiss Solvency Test (SST): all available data 2016 – 2022
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- Bermuda Financial Conditions Reports (BSCR): all available data 2016 – 2022
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- Bermuda Financial Statements: data for 226 insurers 2016 – 2022 (1090 reports) selected tables
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- Israel Economic Solvency Ratio Reports: all available data 2016 – 2022
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- Lloyd’s Syndicate filings: data for 143 syndicates 2016 -2023 (858 reports) selected tables
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- SOLVENCY II WIRE DATA Captive Hub
