Rates decline sinks Allianz’s Solvency II ratio

German insurer Allianz’s regulatory capital ratio dropped for the second consecutive quarter, to 213% from 218%. Year-to-date, it has fallen 16 percentage points.

Market movements, specifically falling interest rates and tightening credit spreads, lopped 11 percentage points off the firm’s Solvency II ratio – its amount of own funds relative to its solvency capital requirement (SCR) – over the six months to end-June.  

Dividend payments and stock buybacks, along with other capital management