POLAND: NBP: in 2022 the SCR coverage ratios of all insurers were above 130%

21 June 2023 — Marina MAGNAVAL
Thanks to the improvement in the insurance sector's solvency ratios observed in 2H2022, at the end of December the coverage ratio of the Solvency Capital Requirement with eligible own funds was 272% in life and 228% in non-life, which was more than at the end of June 2022, the "Financial Stability Report. June 2023" published by the National Bank of Poland said, Gazeta Ubezpieczeniowa wrote.

All insurance companies had own funds in the amount higher than the Solvency Capital Requirement (SCR) and the Minimum Capital Requirement (MCR), maintaining some capital surpluses - the SCR coverage ratios of all insurers were above 130%.

The NBP explains that the increase in own funds resulted mainly from a decrease in liabilities due to unpaid dividends, as well as an increase in the valuation of shares in subsidiaries of non-life insurance companies.

NBP also indicated that dynamic changes in interest rates in 2022 affected the capital position of insurance companies but had a limited impact on their financial results. In 2022, profits from investment activities increased in both segments, and only in life insurance with unit-linked funds, a loss of PLN 3.5 billion (~EUR 0.74 billion) was recorded.

The report in Polish may be found here.

*EUR 1 = PLN 4.70 (31.12.2022)



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