Introduction

The Annual European Insurance Overview is published by EIOPA as an extension of its statistical services in order to provide an easy-to-use and accessible overview of the European (re)insurance sector. The report is based on annually reported Solvency II information. This ensures that the data has a high coverage in all countries and is reported in a consistent manner across the EEA.

The report is objective, factual and data driven and does not contain analysis or policy messages. All indicators used in the report are calculated from the reported data from undertakings. All distributions displayed are unweighted, treating all undertakings in all countries equally. While the topics and indicators covered is intended to be relatively stable over time, the report will be adapted to respond to changes in micro prudential and supervisory priorities. It will therefore support the supervisory community and industry with highly relevant and easily-accessible data at European level.

This report is based on Annual reporting for 2022. The report is published with all data available for download in a separate excel file.

Life Sector

For the majority of countries a decrease in total gross written premium is observed in 2022. At line of business level, both annuity lines saw the highest increase. In both Portugal & Sweden, life business decreased by more than 20%. Life business in Cyprus, Bulgaria, Lichtenstein and Lithuania all increased by more than 10%. Both annuity lines of business remain the most reinsured.

Figure 1 Life Concentration

The concentration indicator is a measure of the market share of the national GWP that the 3, 5, and 10 biggest premium writers account for.

EE, IS, LT, LV, MT & SK all have a 3 undertaking concentration above 80%. The least concentrated market is DE followed by IE, IT, ES & FR.

Figure 2 Aggregate GWP & change per country

The aggregated GWP for both 2021 and 2022 are displayed per country. “Change” displays the increase/decrease in % GWP of this year compared to last. Stable sample based on undertakings reporting in both years.

For the majority of countries a decrease in GWP is observed. The largest percentage increases are observed in CY & BG. The biggest decrease can be observed for PT & SE.

Figure 3 Distribution of change in GWP per country

The year on year growth in GWP is the increase or decrease in premiums written this year compared to last. The chart shows interquartile range and median.

CY has the highest median growth rate followed by IS. IT and PT experienced the biggest median decrease with more than -10%.

Figure 5 Year on Year change in GWP per LOB

The year on year growth in GWP is the increase or decrease in premiums written this year compared to last; for each line of business. The chart shows interquartile range and median.

Health Reins, IL & UL and Ins with PP had a decrease in growth at the median level in 2022.

Figure 6 GWP split by LOB per country

The volume of GWP by line of business for each country expressed as a percentage of total GWP.

Health Ins, IL & UL and Other Life are present in every national market.

Figure 7 GWP per Capita

The location of underwriting for any Life business written by all undertaking and their EEA branches, including by freedom of establishment (FOE) and freedom to provide services (FPS), within the EEA. The chart shows this GWP divided by population.

LI has by far the largest GWP per capita followed by LU, then IE. The lowest value is found in RO, followed by BG.

Figure 8 EEA GWP by LOB

The total direct business & reinsurance life market split into lines of business by premium volume. Percentage values visible in chart and Euro values on hover.

IL & UL is the dominant LOB closely followed by Ins with PP, then Health Ins.

Non-Life Sector

For the majority of countries an increase in total GWP is observed in 2022. Assistance and MAT were the line of business with the highest increase. A median combined ratio of 100% or above was observed for only 3 countries, France, Iceland & Romania. Credit & suretyship is the most reinsured line of business.

Figure 9 Non-Life Concentration

The concentration indicator is a measure of the market share of the national GWP that the 3, 5, and 10 biggest premium writers account for.

LV & LT have a 3 undertaking concentration above 90%. FR has the least concentrated market; followed by DE, ES & CY.

Figure 10 Aggregate GWP & change per country

The aggregated GWP for both 2021 and 2022 are displayed per country. “Delta” displays the increase/decrease in % GWP of this year compared to last. Stable sample based on undertakings reporting in both years.

For the vast majority of countries, growth in GWP is observed in 2022. Only DK & SE showed a contraction in GWP in 2022.

Figure 11 Distribution of GWP change per country

The year on year growth in GWP is the increase or decrease in premiums written this year compared to last. The chart shows interquartile range and median.

LV at 42% has the highest median growth followed by EE & RO at 21%. The lowest growth at median level is observed in FI at 3%.

Figure 12 Year on Year growth in GWP per LOB

The year on year growth in GWP is the increase or decrease in premiums written this year compared to last; for each line of business. The chart shows interquartile range and median.

In all LOBs except Health Reins an increase in GWP is observed at the median level. The highest increase is observed in MAT & Assistance at 10%.

Figure 13 Combined ratio per country

The Combined Ratio is defined as the sum of claims and expenses divided by premiums earned. The chart shows interquartile range and median.

The highest Combined ratio at a median level is found in FR and RO at 101% whilst the lowest is found in MT at 67%.

Figure 14 Claims ratio per country

The Claims ratio is defined as the claims paid divided by premiums earned. The chart shows interquartile range and median.

The highest Claims ratio at a median level is found in IS at 79% whilst the lowest is found in MT at 32%.

Figure 15 Expense ratio per country

The Expense ratio is defined as the expenses divided by premiums earned. The chart shows interquartile range and median.

The highest Expense ratio at a median level is found in RO at 60% whilst the lowest is found in LI and LU at 12%.

Figure 17 Combined ratio per LOB

The Combined Ratio is defined as the sum of claims and expenses divided by premiums earned. The chart shows interquartile range and median.

The highest median Combined Ratio at LOB level is observed in Motor Liab at 101% whilst the lowest is observed in Health Reins at 56%.

Figure 18 GWP split by LOB per country

The volume of GWP by line of business for each country expressed as a percentage of total GWP.

General Liab & Motor Liab make up a proportion of the market in each country, varying from 2% to 26% and 2% to 43% respectively.

Figure 19 GWP as % GDP

NL have the highest GWP/GDP value at 7.1% followed by MT at 5.3%. RO have the lowest value at 0.6%.

Figure 20 EEA GWP by LOB

The total direct business, proportional reinsurance & non-proportional reinsurance non-life market split into lines of business by premium volume. Percentage values visible in chart and Euro values on hover.

Med Exp and Fire Prop are the largest lines of business in terms of GWP in the Non-Life market.

Solvency and Capitalisation

For all countries median SCR coverage ratios are above 155% & median MCR coverage ratios above 315%. Own funds consist of at least 80% Tier 1 - unrestricted own funds for every country.

Figure 21 SCR ratio, distribution by undertaking type

This figure shows the SCR coverage ratios by company type. The charts show interquartile range and median.

For all undertaking types a median value above 215% is observed and 25th percentile value above 160%.

Figure 22 SCR ratio, distribution per country

This figure shows the SCR coverage ratios by country. The charts show interquartile range and median.

DE has the highest SCR coverage with a median value of 299% and lower quartile above 198%. IS has the lowest median value at 157%.

Figure 23 MCR ratio, distribution per country

This figure shows the SCR coverage ratios by country. The charts show interquartile range and median.

FI has the highest median MCR coverage value at 1111%. LV has the lowest median value with 303%.

Figure 24 BSCR Composition - Standard Formula users

The aggregated value of the Solvency Risk Modules for Standard Formula undertakings by company type.

Market risk accounts for more than 56% for every company type.

Figure 25 BSCR Composition by country

The aggregated value of the Solvency Risk Modules for Standard Formula undertakings by country.

Market risk is the most prominent non underwriting related risk, accounting for between 26% and 87% of the BSCR. The diversification impact on the BSCR varies from ~15% to ~55%.

Figure 26 Tiering of own funds - by undertaking type

Shows the breakdown of eligible own funds to meet the SCR into the tiers of own funds which it consists of. Aggregated by company type

Non-Life undertakings have the highest proportion of Tier 1 unrestricted own funds at 95%.

Figure 27 Tiering of own funds - by country

Shows the breakdown of eligible own funds to meet the SCR into the tiers of own funds which it consists of. Aggregated by country.

The lowest proportion of Tier 1 unrestricted own funds is found in NO with 80% followed by BE with 84%. Conversely, CY, SE & SK all have 99% or more Tier 1 unrestricted own funds. CZ has the highest dependence on Tier 3 own funds at 6%.

Figure 28 Impact of LACDT, by undertaking type

Loss absorbing capacity of deferred tax assets (LACDT) expressed as a percentage of the eligible own funds to meet the Solvency Capital Requirement by company type. The chart shows interquartile range and median.

LACDT has the highest median impact for reinsurance undertakings at -9%.

Figure 29 Impact of LACDT, by country

Loss absorbing capacity of deferred tax assets (LACDT) expressed as a percentage of the eligible own funds to meet the Solvency Capital Requirement by country. The chart shows interquartile range and median.

The highest impact at a country level is observed for IS with a median value of -12%.

Figure 30 Impact of EPIFP, by undertaking type

The expected profit in future premiums (EPIFP) expressed as a percentage of the eligible own funds to meet the Solvency Capital Requirement by company type. The chart shows interquartile range and median.

EPIFP has the highest impact on own funds for composite undertakings at 6%.

Figure 31 Impact of EPIFP, by country

The expected profit in future premiums (EPIFP) expressed as a percentage of the eligible own funds to meet the Solvency Capital Requirement by country. The chart shows interquartile range and median.

The highest impact of EPIFP at country level is observed in SK, with a median value of 55%. This is followed by LT at 35%.

Figure 32 SCR with & without Transitionals, LTGs - All undertakings

The SCR ratio calculated with & without the impact of transitionals and long term guarantees, respectively. Sample includes all undertakings irrespective of whether or not they use any of the measures.

DE display the highest impact of transitionals to the SCR ratio at 34%. NL has the highest impact of LTGs to the SCR ratio at 54% respectively .

Figure 33 SCR with & without Transitionals, LTGs - Undertakings using measures

The SCR ratio calculated with & without the impact of transitionals and long term guarantee measures, respectively. Sample includes undertakings who use at least one of the measures.

DE display the highest impact of transitionals to the SCR Ratio at 61% whilst NL have the highest impact of LTGs to the SCR Ratio at 78%.

Figure 34 Impact of Transitionals & LTG per country

The impact of transitionals and impact of long term guarantee measures are calculated as a percentage of the Eligible own funds to meet the SCR. Sample includes life undertakings who use at least one of the measures.

DE display the highest impact of transitionals to the EOF at 16% whilst NL display the highest impact of transitionals to the EOF at 10%.

Investments

Government Bonds, Corporate Bonds, & Collective Investment Undertakings together account for ~70% of Solvency II investments with Equity investments making up a further ~17%.

Figure 35 CIC Category

The Complementary Identification Code (CIC) is a set of industry standard codes for identifying the specific type of financial instrument under Solvency II. Only Non index-linked/unit linked assets are included.

Figure 36 Credit Quality Step

Credit Quality Step reported for relevant assets (CIC: 1, 2, 5, 6). Allocation by country. Standard Formula users only. Credit Quality Step (CQS) is a standardised scale of credit quality with mappings to the credit ratings of the largest ratings agencies. CQS 0-3 correspond to investment grade assets with 4-6 being non-investment grade.

Figure 37 Issuer country of EEA Government Bonds

The location of investment for all Government Bonds, excluding those held for unit-linked or index-linked portfolios, i.e. where CIC main category is equal to 1

Of those government bonds held by (re)insurance undertakings and issued in the EEA, the top 2 issuer countries together (FR & IT) account for 50%. The top 4 issuers of government bonds (DE, ES, FR, IT) together amount to 76% of the total.

Figure 38 Issuer country of EEA Corporate Bonds

The location of investment for all Corporate Bonds, excluding those held for unit-linked or index-linked portfolios, i.e. where CIC main category is equal to 2

Of those corporate bonds held by (re)insurance undertakings and issued in the EEA, the top 3 issuers (DE, FR, & NL) together account for 60%.

Figure 39 Issuer country of EEA Equity

The location of investment for all Equity, excluding those held for unit-linked or index-linked portfolios, i.e. where CIC main category is equal to 3

Of the equity held by (re)insurance undertakings and issued in Europe, the top 2 issuers (FR, DE) together account for 61%.

Figure 40 Use of Derivatives

Derivative positions split by use of derivative. Notional amounts shown.

Figure 41 NACE Sector

link

Description of the NACE codes