Solvency Ratios of Selected German Captives Vary Between 131% and 368%

Munich, May 30, 2017 - Freudenberg Rueck holds the record with a solvency ratio of 368 %. Comparing solvency ratios can though be tricky, since reporting entities often use transitional measures which distort results. Twelve captives domiciled in Germany had to publish their Solvency and Financial Condition Report (SFCR) on May 23rd 2017. Eight of them published them online so far. More


Captives Essential for German Risk Managers  - Concerns about Solvency II

Munich, May 8, 2017 - Despite the current soft market in industrial insurance, captives remain an important tool for steering and managing risks in large German corporates. They help German insurance professionals to manage their way through the cycles of the market, prevent losses and gain independence from traditional market capacity. More



Zurich Advocates Bundling of Life and P&C Exposures in One Captive

Zurich, April 18th, 2017


“Putting life and non-life covers in one bucket is a good way to achieve higher diversification benefits and reduce operating costs”, says Dr. Paul Woehrmann, Head of Captive Services Global Corporate of insurer Zurich. More



Runoff Providers Expect Further Decrease in Swiss Captives

Zurich, March 30th, 2017 - The number of captives in Switzerland has already declined from 53 in 2005 to 26 by the end of 2016. Reasons were increasing cost pressure on smaller entities from the Swiss Solvency Test and, more recently, from equivalence with Solvency II as well as mergers of parents who wished to consolidate redundant entities. On the plus side, only few captives were created or have moved to Switzerland during the last years. More



Captives in the Visor of BEPS: FERMA Gets Active

Munich, Feb 19th, 2017: Both NGOs and government policymakers have blamed corporate reinsurers for shifting profits to low-tax environments and thereby eroding their home countries’ fiscal base of taxation. The G20-sponsored OECD working group on Base Erosion and Profit Shifting (BEPS) has issued recommendations against such strategies which include three areas relevant for captives: strengthening of Controlled Foreign Companies (CFC) - legislation, rules for permanent establishment status and rules for transfer pricing. More




French CAC40 Companies Uncertain About Future of SII Captives

Munich, Feb 6th, 2017: Two French risk managers who preferred to remain anonymous expressed doubts about the viability of captives under the new Solvency II rules in force since January 2016. Over dinner at the 25th AMRAE conference on Wednesday Feb 1st in Deauville in the north of France fears from ever increasing administrative burdens were highlighted. Costs for reporting, actuarial risk modelling and documentation of governance processes disturb captive owners most. More



HDI France Does Not See Recession in European Captives Due to Solvency II

Deauville, Feb 1st, 2017: Although captives in the European Economic Area are obliged to comply with Solvency II since early 2016, it apparently has not led to widespread consolidation in the market, said Etienne de Varax, director of HDI Global in France at the AMRAE conference in Deauville on Wednesday February 1st. The on-going influx of capital from financial markets and development of cell captive concepts could even mean new opportunities for captives, Mr. de Varax pointed out. More



New Directory of Solvency II (Re)Insurance Captives and Their Owners Launched

Munich / Germany, Jan 29th, 2017: The total number of captives in the European Union and associated countries stood at 582 in January 2017. With more than every third active captive in the Solvency II - area being domiciled in Luxembourg, the grand duchy in the heart of Europe is the leader in captive markets regulated by Solvency II. More



Captives on Agenda of French Risk Manager Meeting in February

Jan 9, 2017: Two sessions on captives sit on the agenda of the upcoming conference of the French risk managers' association AMRAE in Deauville early February. The first one covers BEPS implications on corporate reinsurers and insurers, the second one gives insight on the application of the Solvency II standard formula.  More



European Insurance Captive Market Bearish - Except Runoff Specialists

Munich, Nov 10, 2016: Insurers, captives and service providers gathered from November 7 to 9 in Luxembourg, the EU's most popular captive domicile by number of entities. Their overall attitude appears to be 'wait and see', what other burdens after the introduction of Solvency II will come from projects such as BEPS. Runoff is an option for some. More



German Risk Manager Association Highlights Importance of Captives

Munich, Sep 9, 2016: Alexander Mahnke, chairman of the German risk managers' association GVNW, confirmed that insurance captives play a pivotal role in their members' activities to steer corporate risk. "No other insurer is as close to their owner's risks as a captive - they are predestinated to insure them", he said during a press conference held at the association's annual meeting in Munich. More