French insurers: impact of Covid-19 investment market volatility on solvency ratios

Our Senior Consultant for the Insurance sector and President of Advindo Lotfi Elbarhdadi and Ludovic Anthony show that in March 2020, the uncertainties around the impact of the propagation of COVID-19 on the global economy have led to unprecedented volatility in investment markets, with plummeting equity markets, declining risk free rates and widening credit spreads. Viewed from insurers risk-adjusted capital adequacy angle, and based on sensitivities published as part of insurers Solvency II reporting, such stresses rank high among factors with the most negative impact on insurers capital adequacy ratios.  

In this article (in French), we analyze the potential impact of market stresses witnessed as at mid-March 2020 on French insurers Solvency II ratios.

Download his latest research note: "French insurers: impact of Covid-19 market volatility on solvability ratios".