For European insurers, life is about to get a lot more volatile. Investors will need to hold their nerve. The industry will adopt a new capital regime from January. Remarkably, both companies and their investors still cannot be sure exactly what this will mean.
Like others, however, it hasn’t yet been given final approval of its models by regulators.
But what Allianz does report is very useful to investors trying to understand what the new world will look like—particularly when it comes to how an insurer’s capital number can move around over time.