Munich Re receives approval for Solvency II internal model

Reinsurer Munich Re has received approval for its Solvency II internal model.

The firm said in a statement that the German regulator Federal Financial Supervisory Authority (BaFin) had provided approval to use a full internal model from 2016 to calculate regulatory solvency capital requirements under the new Solvency II regulatory regime for the consolidated group and for select solo undertakings.

Munich Re said it has been drawing up and developing its own full internal model for around ten years.

The firm explained that further details of the approval will be presented as part of its briefing on Solvency II held for investors and analysts on November 30, 2015 in London.