Italian insurers lose 25 points from solvency ratios in Q1; IVASS carrying out weekly checks

Written by Adam Cadle

18/06/2020

Italian insurers lost 25 points from their solvency ratios in Q1, Italy’s insurance watchdog IVASS has said.

IVASS said it had started monitoring solvency and liquidity ratios of Italian insurers from mid-March. The average solvency ratio of Italian insurers stood at 210% at the end of March from 235% at the end of December

For large insurers, checks are now being carried out on a weekly basis and IVASS is demanding action if solvency ratios fall below 130%.

IVASS chief Stefano De Poli said the situation had lately improved thanks to lower risk premiums on Italian government bonds and a general recovery on financial markets, but he added uncertainty remained high.

At the beginning of the month, IVASS asked Cattolica Assicurazioni to strengthen its capital by €500m and to draw up a plan to boost its solvency and liquidity position.

Cattolica said IVASS had highlighted the weakened solvency position of the insurer “as a consequence of the deterioration of the financial markets following the spread of the COVID-19 pandemic”.

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