Financial Stability Report June 2024

The European Insurance and Occupational Pensions Authority (EIOPA) published today its June 2024 Financial Stability Report, which offers a stocktake of key developments and risks in Europe’s insurance and occupational pensions sectors.

The report notes that European insurers and occupational pension funds are navigating a macroeconomic environment marked by high geopolitical tensions, a string of elections in large economies, uncertainties about the economic outlook and waning support for globalization and international cooperation. The sectors have remained robust on aggregate, despite widespread challenges including subdued growth and cautious consumer spending. The insurance sector is solidly capitalized. Median SCR ratios for life insurers and composite undertakings have improved throughout the shift from low to higher interest rates, as have profitability levels.