Govt/corporate bonds and collective investment undertakings form 74% of European insurance SII investments

Written by Adam Cadle

07/10/2021

Government bonds, corporate bonds and collective investment undertakings together accounted for 74% of European insurance Solvency II investments in 2020, with equity making up a further 12%, according to figures published by EIOPA.

In its European Insurance Overview 2021, EIOPA said of those government bonds held by (re)insurance undertakings and issued in Europe, the top two countries, France and Italy, accounted for 44%. The top five issuers of government bonds (France, Germany, Italy, Spain and the UK) together amount to more than 75% of the total.

Of those corporate bonds held by (re)insurance undertakings and issued in Europe, it was noted that France, the UK and Germany together account for 57%.

Of the equity held by (re) insurance undertakings and issued in Europe, EIOPA said France, Germany and the UK together account for greater than 60%.

For life business, the majority of countries saw a decrease in total gross written premium (GWP) is observed in 2020. At a line of business level, only health insurance saw a median increase in GWP. Decreases in GWP at over 30% were observed in two countries, Portugal & Finland.

In the non-life business area, the majority of countries saw an increase in total GWP in 2020. Casualty & Property reinsurance were lines of business with the highest increase. A median combined ratio of above 100% was observed for only two countries, Norway and Romania.

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