Italy insurance groups all above minimum 130% solvency ratio-watchdog

Solvency ratios at Italian insurance groups are all above the key 130% minimum, with the average around 210%, the head of national insurance watchdog IVASS said on Monday.

Adds detail on insurance companies below group level

ROME, Oct 19 (Reuters) - Solvency ratios at Italian insurance groups are all above the key 130% minimum, with the average around 210%, the head of national insurance watchdog IVASS said on Monday.

IVASS head Daniele Franco said checks on solvency and liquidity ratios of the country's insurers after the coronavirus pandemic hit financial markets in the spring had prompted companies to look carefully at dividend policies and boosting their capital buffers.

"The Italian insurance system is solid overall even in a difficult context," Franco told a meeting of insurance industry association ANIA, adding that companies still had to maintain and protect capital safeguards.

A note in the text of his speech said that three insurance companies below group level had solvency ratios of between 116 and 129%.

When IVASS announced the checks earlier this year, it said it would demand action if an insurer’s solvency ratio, a key indicator of financial strength, fell below 130%.

(Reporting by Stefano Bernabei; writing by James Mackenzie; editing by Agnieszka Flak)

((james.mackenzie@thomsonreuters.com; +39 02 66129533 ; Reuters Messaging: Reuters Messaging james.mackenzie.reuters.com@reuters.net))

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