- Despite significant volatility in the capital markets, as of 20 March 2020 the Solvency II ratio is comfortably within the target range of 150-200 percent
- Conservative investment profile supports resilience
Per 31 December 2019 the HDI Group has achieved a robust Solvency II ratio of 211 percent (30 September 2019: 196 percent, 31 December 2018: 209 percent) net of transitional. Including transitional the ratio stood at 246 percent (232 percent at 30 September 2019, 252 percent at 31 December 2018). The increase versus 30 September resulted from an increase in own funds, while the solvency capital required (SCR) remained stable. The increase in own funds compared to 30 September 2019 was mainly driven by rising interest rates and a subordinated bond issued by Hannover Re.
Per 20 March 2020 the HDI Group continues to be well capitalised, amidst the Corona crisis. Despite the significant changes in rates, spreads, and equities between 1 January and 20 March 2020, the Solvency II ratio (net of transitional) is comfortably within our target range of 150 to 200 percent.
Based on our own competitor analysis, we would note that in a relative perspective we see ourselves well positioned to weather the recent market volatility, given our very low share in listed equities (approx. 1 percent of assets under own management vs. the average of over 6 percent for the eight peers we use for comparisons at Group level) and a low share of bonds with a rating of “BBB or lower” (approx. 22 percent vs. peer average of approx. 25 percent).