MNB: Insurance companies required solvency ratio above 200%
Based on preliminary data, the solvency ratio for insurance companies on a sectoral level has reached 209% of the requirement, with only one insurer below 100%, a ratio that was corrected with a capital raise in the first quarter, the National Bank of Hungary (MNB) said today, according to Hungarian news agency MTI.
One insurance company had not provided data but as an early response measure, a supervisory commissioner has already taken over the management of the company, MNB added.
According to the central bank, insurance companies have successfully fulfilled one of the most important demands of switching over to the Solvency II system, a comprehensive regulation for the insurance sector, as they are operating safely when it comes to capital adequacy.
In the future MNB will demand that companies introduce a volatility capital buffer that will ensure insurers always reach their capital adequacy ratio despite larger short-term fluctuations in their capital.
From July 1 insurers will also have to prepare a mid- to long-term forecast on risks and their capital solvency.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.