Achmea’s solvency remains robust after applying DNB’s amended guidelines for calculating group solvency by the end of 2020
Achmea is a cooperative insurance group and calculates its solvency according to Solvency II. In accordance with the guidelines of DNB (Dutch Central Bank), the entities subject to banking regulation were previously excluded when calculating the group solvency of Achmea’s regulated entities under Solvency II. These are the Achmea Bank, Achmea Investment Management and Syntrus Achmea Real Estate & Finance business units, which calculate and report their solvency separately.
DNB announced that from the end of 2020 the insurance industry must include business units subject to banking regulation in an insurance group’s solvency calculations.
Implementation of this amended regulation in 2020 means a modest reduction of 6 percentage points in Achmea’s group solvency. Our solvency was 219% at the end of 2019 and remains robust and well above our internal targets. The Common Equity Tier 1 ratios of the banking operations at year-end 2019 were 19.2% for Achmea Bank, 19.4% for Achmea Investment Management and 30.1% for Syntrus Achmea Real Estate & Finance.
The standalone capital ratios of both the banking and the insurance entities are unaffected and consequently they remain well capitalised.