Generali weathers Italian bond turbulence

Spiraling Italian government bond (BTP) yields barely dented Generali’s regulatory solvency ratio in the second quarter. 

The insurance giant posted a Solvency II solvency capital requirement (SCR) ratio of 201% at the end of June, down from 207% six months earlier. The drop was caused by widening BTP yields, which spiked to 3.16% on May 29 after Italy’s president rejected a coalition government recommended after the March elections. 

Yo-yoing markets caused a 14% deduction in the ratio,