Achmea receives approval for its Solvency II partial internal model
Achmea has received approval from the Dutch Central Bank and the Bank of Greece to use its partial internal model for prudential purposes. The model developed during the past few years has been assessed by the supervisors and meets the Solvency II requirements. Using the partial internal model provides Achmea with better insight in its risks allowing for better risk management and thereby improved customer protection.
The partial internal model will be used by the Dutch Non-life and reinsurance entities and Greek subsidiary Interamerican Property and Casualty Insurance Company SA for the calculation of Non-life and Disability (Health SLT) underwriting risk.
Achmea intends to extend the scope of the internal model with internal models for Health underwriting risk (Health NSLT) and market risk.
Achmea calculates the solvency position with respect to the approved partial internal model, the target partial internal model (including internal models for Health NSLT underwriting risk and market risk) and the standard formula. The results per Q2-2015 are as follows:
|Approved partial internal model||185%|
|Target partial internal model||196%|
Please note that these results are based on the interpretation of the Solvency II regulations and the status of the models as of 30 June 2015. It is expected that the results of the models as of year end 2015 will be influenced by further interpretation of the Solvency II regulations, including the treatment of taxes (application of the LAC DT), the provision for insufficient premiums for Health (€ 470 million) and further improvements of the models.