The ECB offices in Frankfurt. Photograph: Moody’s estimates that European insurers had racked up more than €500 billion of unrealised losses on their bond investments over the course of 2022. Photograph: Kirill Kudryavtsev/AFP
Four of the five largest insurers in the market have either published so-called solvency and financial condition reports on their websites for 2023, includingThe four racked up a combined €303.8 million of realised losses, taken through their income statements, and unrealised losses, which are not recorded in profit and loss accounts, in 2022 as market rates on bonds globally soared as central banks hiked official rates to fight soaring inflation.
The European Central Bank had hiked its key deposits rate from minus 0.5 per cent to 4 per cent over the 15 months to last September in a battle against inflation. Euro zone bond yields have risen again since the end of last year, as investors have reined in expectations about the pace at which rates will be reduced.
The latest SCFR report for Allianz Ireland, the second largest general insurer in the Republic, shows its premiums rose last year to €649.1 million from €624.4 million in 2022. Profit for the year dipped, however, to €41.9 million from €46.6 million.