Talanx stresses its resilience amidst market volatility and COVID-19
European insurance group Talanx, the parent company of Hannover Re and HDI, says that it is "well positioned" to weather the recent market volatility and coronavirus crisis, supported by its conservative investment profile.
As of December 31, 2019 the HDI Group achieved a Solvency II ratio of 211 percent net of transitional, and including transitional the ratio stood at 246 percent. The increase resulted from an increase in its own funds, mainly driven by rising interest rates and a subordinated bond issued by Hannover Re, while the solvency capital required (SCR) remained stable.
According to the insurer, the HDI Group continues to be "well capitalised" amidst the coronavirus pandemic as of March 20, 2020.
"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," Talanx said.
"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)."
