UK non-life insurance results highlight the significant impact that different investment and underwriting risk strategies have on Solvency II (SII) capital ratios, impact-Image may be NSFW.
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glassaccording to Fitch Ratings.
The varying impact of SII on Esure, Admiral and Direct Line reflects differences in business diversification, investment and risk transfer strategies, said the firm.
Esure reported an SII coverage ratio of 123 percent for end-2015, at the lower end of the peer group. Admiral’s SII coverage was 206 percent and Direct Line’s was 147 percent. All three use the standard formula for calculating these ratios.
