Johan Thijs, KBC Group CEO: ‘KBC’s very solid Solvency II ratio is testimony to the health of its insurance business. It is the result of sound preparation for the new regulatory framework and a highly qualitative ALM approach. It will allow us to grow sustainably and to create long-term value for our shareholders and other stakeholders. Our solvency position ranks us well above the average in the European insurance industry. KBC has opted for the Standard Formula Model approach, which is regarded as more conservative, rather than using internal models.’
Solvency II is the new regulatory framework for insurers in Europe. It sets new requirements with regard to required capital, risk management and reporting standards. Its implementation as of January 2016 substantially changes the approach to insurance risk and company-wide risk management. It serves solely for reporting purposes and has no impact on KBC’s insurance products or the services offered to its clients. KBC Insurance chooses to use the volatility adjustment (VA) method, and applies no transitional measures.
(*) This description relates to all insurance activities in the consolidation scope of KBC Group NV.