European Insurance Solvency monitor: 1H26 stable versus FY25

Research evidence excerpt

European Insurance Solvency monitor: 1H26 stable versus FY25

Powered by Lab Global10 JulyResearch2026ab Evidence UBS YES

European Insurance Equities

Europe including UKSolvency monitor: 1H26 stable versus FY25

Insurance

Nasib Ahmed, FIA

June solvency ratios at 215% on average, broadly flat relative to FY25 Analyst

We estimate strong average solvency positions for the sector at 215% on average, nasib-za.ahmed@ubs.com

broadly flat versus FY25 levels with immaterial market movements (see Figure 1 below). +44-20-7568 8231

Capital generation covered shareholder distributions, with debt actions also Qian Lu

contributing positively towards solvency positions. Analyst

qian-za.lu@ubs.com

Equity rally offsetting interest rate movements over 2Q +44-20-7567 4657

We note that higher equity markets were a positive for the sector over 2Q26, with lower Will Hardcastle, CFA

interest rates in Europe and the UK (c. 10bps lower) an offsetting headwind. However, Analyst

we note that US interests are higher (c.15bps) over 2Q26, providing a tailwind to those will.hardcastle@ubs.com

+44-20-7567 9763

insurers with US exposures. Dutch mortgage spread movements were different at NN

Group (+6bps widening) and ASR (-14bps tightening), which is due to different Chloe Ryan

smoothing methodologies used by the two companies. Associate Analyst

chloe.ryan@ubs.com

+44-20-7567 3505

Key solvency movements

We note that L&G and Aviva's debt management actions add to the solvency

positions of both companies. We note that L&G's action comes after 1H, and would add

c.8ppts of solvency based on our estimates. Aviva's actions added +5ppts of solvency

over 1H. Standard Life's solvency is negatively impacted by two debt redemptions and

the interim dividend.