The solvency ratio of the Italian insurance sector reached 260% at the end of 2021, compared to 243% in December 2020, and total premium income rose by 4%, Banca d’Italia’s Financial Stability Report has said.
The average ROE for the sector (around 9%) was down on the previous year; in the life sector, it remained basically unchanged, while in the non-life sector it instead declined, partly owing to the rise in the ratio of claims plus operating expenses to premium income.
“The financial market turbulence generated by the outbreak of war in Ukraine has had a limited effect on the capitalisation of companies,” the report stated.
“The impact of the fall in equity and bond prices was offset by the greater availability of own funds stemming from the rise in the risk-free interest rate curve that insurance companies use to calculate the technical provisions.”