With just 16 months until the EU’s Solvency II Directive is adopted, KPMG has carried out a survey of leading quoted insurance firms operating in the EU. It uncovers much uncertainty regarding what firms intend to disclose publicly to analysts and investors in the run-up to, and post Solvency II implementation on 1st January 2016.
Few want to risk a negative reaction from analysts by unnecessary over-disclosure or getting public reporting wrong. However, firms are keen to manage messages to investors and ‘keep up with the pack’ as competitors begin disclosing more and more information relating to Solvency II.
Our survey suggests that Solvency II is driving companies to re-consider their wider financial framework and we may shortly be witnessing an end to Embedded Value reporting for many firms.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.