2010 European Insurance Outlook (Ernst & Young)

Although insurers fared better than the banks during the global  nancial crisis and resulting recession, premiums for 2008 declined by 6% to just under €1,060b with no improvement in 2009. Overall, life insurance companies fared better from the crisis than banks; however, they were shaken by investment losses, as were their customers with market-linked products. General insurance companies suffered from capital base erosion and by the continuation of soft rates. European Union (EU) insurers’ efforts to rebuild capital may be complicated in 2010 by a changing accounting and regulatory environment and the impending implementation of Solvency II, with many commentators forecasting a need to increase capital levels.

http://www.ey.com/Publication/vwLUAssets/European_insurance_outlook_January_2010/$FILE/2010_Insurance_outlook_Europe.pdf