New financial reporting standards force EU insurers to be more transparent

Swiss Re said today that the U's International Financial Reporting Standard's (IFRS), which will be introduced in January 2005, would force EU insurers to become more transparent.

From 2005, the IFRS requires that insurers report market values rather than amortized costs. At the same time the treatment of liability cover remains unchanged and insurers will no longer be able to hold equalisation reserves.

Swiss Re senior economist Rainer Helfenstein said the regulations would make the industry more transparent and earnings and capital “will become more volatile.”