FRANKFURT Aug 5 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)