Solvency II hits company profits

Two thirds of European insurance companies have had to take on substantial numbers of extra staff to deal with delayed EU reforms to the sector, according to a report released yesterday by Moody’s Analytics. The research found that the majority of insurers have had to increase staff by at least 10 per cent in order to address the requirements for Solvency II. The reforms, which will substantially increase capital requirements, have been repeatedly delayed and are now not due to be introduced until at least 2016.