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Any actuaries around? Question about Irish Insurance and Solvency II requirements.

  • 17-03-2011 2:58pm
    #1
    tariqbutt
    Registered Users, Registered Users 2 Posts: 59 ✭✭


    I have a question regarding how Irish insurance companies are going to deal with the new Solvency II requirments. Any help would be much appreciated.

    Solvency II regulatory requirements in the EU for insurance companies dictates how much capital they are required to hold against investments (Like Basel II except for insurance companies). The new requirements have different percentages of capital for different types of investments. Some alternative investments require as much as 25% capital to be held (Bonds are about 7 or 8% for example). However a loophole around this is that only something like 2% of capital has to be held against the issuance of mortgages. Thus while investing in property funds requires insurance companies to hold a large amount of capital; actually issuing the mortgage means a much lower amount of capital is to be held.

    I know of a few UK insurance companies who are going down this route of issuing these mortgages.

    My questions are thus (1 easy, 1 hard)

    1. Do you know the names of big Irish insurance companies?
    2. Do you know of any in Ireland that are going to go down this route of issuing mortgages as a means of investment?


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