Capital structure of insurance companies: domestic and european requirements.

Abstract

In article results of a research of features of forming of a capital structure of insurance companies are reflected in Ukraine and comparisons with requirements which are introduced in the European and world practice for ensuring better capital management for the purpose of strengthening of responsibility of insurance companies to clients and the maximum use of financial potential as powerful institutional investors in economy of Ukraine. Two main theoretical approaches in consideration of a capital structure are allocated. Requirements to the equity of insurance companies significantly differ in the domestic and European legislation. In activities of insurance companies the considerable attention is paid to an equity which is the basis of solvency calculation. Distinctive feature of requirements to determination of the equity is availability in the European legislation of requirements for forming of the equity, based on risks. The interrelation of the necessary solvent equity of an insurance company and the risks accompanying its activities is determined. Risks which are considered in case of determination of the basic necessary solvent equity and risks which are considered in case of determination of the necessary solvent equity according to the European requirements are specified. For further researches approach in which the capital structure of an insurance company will consist of an equity and liabilities, including insurance reserves will be used.