European insurer solvency remains robust from US tariff effects

Written by Adam Cadle

09/04/2025

European insurer solvency remains robust amid equity market declines triggered by US tariffs, Moody’s Ratings has stated.

Insurers entered this period of market volatility with very strong solvency ratios, averaging a high 220% for large players, so the deterioration has been viewed as moderate at this stage.

Insurers' equity sensitivities vary, with UK companies typically less susceptible to equity market volatility than European peers because of lower equity investments, or investments concentrated in with-profit funds which include significant loss absorbing policyholder buffer.

Disclosure is also not always comparable. For example, large European companies such as Allianz SE (Aa2 stable) and AXA SA (Aa3 positive) publish equity sensitivities that capture the impact of a decline in both public and private equity investments, but their sensitivity to listed equities only is lower. Most companies publish equity sensitivity that relate to public equities only.

Additionally, US tariffs may affect European insurers through other transmission channels including increasing spreads, lower economic growth, and the potential impact on interest rates or P&C claims inflation.

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