P&C

Solvency & Reinsurance in Europe – Review of the Solvency II reports, Year end 2025

September 2, 2026

This report explores how insurers are navigating the balance between risk and capitalization, with a median solvency ratio of 227% – a significant increase compared to previous years. It highlights how reinsurance is increasingly used not just for risk transfer but as a strategic tool to manage capital requirements and support growth. For example, ceding €1 million in premium can reduce capital requirements by €325,000 after diversification and deferred tax. When targeting a solvency ratio of 227%, this is equivalent to raising €735,000 in equity. The report also provides country-level benchmarks and insights into underwriting risk, solvency trends, and capital optimization strategies.