Zurich builds up capital buffers
Zurich’s economic capital ratio strengthened year-on-year in response to benign market conditions and strong profit generation.
The Zurich economic capital model (Z-ECM) ratio stood at 133% at the end of March 2018, up from 129% the year before.
This is above the group’s 100–120% target range, meaning management may consider taking on increased risk in future quarters.
Z-ECM capital consumption as of January 1 was split 49% for insurance risk, 44% for market risk, 4% for other credit risks,
More on Risk Quantum
Most read on Risk.net
- People moves: SocGen adds in prime services, Deutsche fills new rates hole, HSBC makes model move, and more
- Credit risk quants are hitting the tech gap
- Princeton tops inaugural Risk.net quant master’s ranking
- Does credit risk need an expected shortfall-style revamp?
- Teach history to avoid mistakes of yesterday’s quants
Back to Top