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Persisting low yields and recent adverse developments such as increased protectionism should not be neglected, despite the improvement in recent economic data and the ongoing normalisation of monetary policy.
Higher volatility in bond markets since March led to an increase in market risks, but these continue at a medium level. Credit risks also remain at a medium level, although spreads increased across all bond segments.
Profitability and insurance risks benefited from the fading out of the impact of last year's natural catastrophes on (re)insurers' technical results.
Median solvency ratios remain at satisfactory levels, though the reliance of some life insurers on transitional measures is high.
Market perceptions were marked by an overall positive change in insurance groups' external rating outlooks, which was counterbalanced by an underperformance of insurance stocks relative to the overall market.