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Solvency II could increase cost of capital for insurers says Moody’s

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The increased volatility of Solvency ratios under the new Solvency II guidelines may reduce investor appetite and increase the cost of capital for insurers, according to Moody’s

"Solvency II ratios' volatility will surely gain investor attention and, because this volatility will not be fully economic, it will in some cases distort investors' perception of insurers' risks,"

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