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The EU’s Solvency II directive drives new acquisition opportunities in the legacy insurance business market.

Under the Solvency I directive, a legacy business with sufficient reserves required very limited capital.

Solvency II, which entered into effect on January 1st, 2016, will oblige (re)insurance companies to hold equity capital that takes into account all risks incurred by the company: reserve risk, impairment of invested assets, reinsurer default, asset-liability risk, and so on. Significantly larger amounts of capital, driven by reserve amounts and classes of business, have to be allocated to cover the risks of legacy portfolios.