A vision of the future to put insurers on edge

Shareholders have shown how sensitive they are to solvency ratios

Firms got an insight over the summer into how their Solvency II position might affect their share price in future and won’t have enjoyed what they saw. In August the stocks of leading Dutch insurers dipped sharply on the news they were changing their stated expectations about solvency ratios under the incoming rules.

The experience suggests shareholders are more sensitive to news on insurers’ capital strength than had been expected – not happy news for insurers, given the uncertainty – still – a