FRANKFURT, Aug 5 (Reuters) - German reinsurer Hannover Re has won approval from insurance regulators for a tailor-made solvency model it will use under EU risk capital rules that come into force in January, the reinsurer's chief executive said on Wednesday.
Ulrich Wallin told an analyst call the company's internal model showed capital at 265 percent of the amount needed to meet regulatory requirements, adding that Hannover Re's aim was to maintain its capital well above 200 percent.
Analysts are studying regulatory solvency capital ratios closely in hope that the new Solvency II rules will open the door for big insurance players to return excess capital to shareholders in the form of higher dividends or share buybacks.
Hannover Re aims to pay out 35-40 percent of net profit as a dividend but said it may increase this ratio if its "comfortable" level of capitalisation remains unchanged. (Reporting by Jonathan Gould; Editing by Maria Sheahan)