European Captive Insurance Solvency Ratio Hits 221%
A new industry analysis reveals the financial landscape of 347 licensed European captives as of year-end 2025.
Updated on Oct. 15, 2026 in Economic Indicators
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An analysis from SCOR examining year-end 2025 Solvency II data shows that the median solvency ratio for European captive insurance companies is 221%. This report offers a comprehensive look at the financial stability of the sector.
Why it matters
These benchmarks assist captive owners and insurance professionals in evaluating their financial positions relative to the broader market. The findings provide critical insight into capital requirements and risk distribution across major industrial sectors.
European captives hold total assets of €37.3 billion and reported €6.6 billion in premiums across the sample. Non-life underwriting risk represents 69% of the average solvency capital requirement.
The players
SCOR
SCOR is a global reinsurance company that provides risk transfer solutions and conducts industry-wide financial research.
The details
The report identified 347 licensed captives, with 69% of these entities domiciled in Luxembourg and Ireland. Property insurance remains the dominant line of business, utilized by 77% of the analyzed companies.
Timeline
Year-end 2025: The data collection period for Solvency II disclosures.
Macro View
This analysis of captive insurance solvency follows the standardized reporting frameworks established by the European Union's Solvency II Directive. The report utilizes the mandatory disclosure requirements of the directive to provide a standardized comparative baseline for the industry.
For stakeholders and insurance professionals, these figures highlight the capital reserves currently held by captives to cover potential liabilities. Companies can use these median benchmarks to assess if their own capitalization aligns with typical industry standards.
The takeaway
Captive owners should evaluate their solvency ratios against the 221% median to ensure competitive and stable risk management. Aligning capital reserves with sector-wide data helps entities maintain compliance while optimizing their own insurance assets.
Further reading
For broader trends in financial health, visit the Economic Indicators section.
Source note: This article includes information reported by ReinsuranceNe.
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Do you trust that captive insurance companies hold sufficient capital to cover their financial liabilities?
