Analysis of 300 solo German insurers, totaling EUR 2.3 trillion in total assets, close to 100% of market coverage (based on official EIOPA 2023 figures) reveals a significant drop in solvency levels.
The figures are based on QRT data extracted from the 2024 Solvency and Financial Condition Reports.
The average solvency ratio of the sample in 2024 is 285%, compared to 318% in 2023. Close to 60% of the insurers reported a drop in the solvency ratio.
Life insurers reported the biggest drop in the solvency ratio, a decrease of 38%, from 475% in 2023 to 297% in 2024.
The average ratio of the non life insurance segment reported a decrease of 8%, from 276% to 255% in 2024 respectively, while the composite segment remained unchanged at 289%.
The main driver for the life segment plummeting of the solvency ratio is a substantive reduction in the EOF, down from EUR 545 billion to 509 billion in 2024. According to the EIOPA statistics, in 2023 the EOF total of the entire German solo market was EUR 588 billion.
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