Some aspects of calculating solvency of insurance companies according to the principles of Solvency II

The diploma thesis focuses on the topic of the future regulatory regime of the insurance and reinsurance market of the European Union called Solvency II. Currently the most discussed issue without a final structure is an extensive set of legislative and technical changes not only in the area of solvency treatment. Primarily, the work focuses on the standard formula calculation of capital requirements that reflect the solvency position of companies on the market. The first part deals with the theoretical description of the calculating methods of the required capital levels under current and future rules on the basis of available official documents. Further the general overview of the Solvency II is presented, a more detailed description of the valuation techniques of balance sheet items for the purposes of Solvency II, dealing with company's own funds and possible ways to optimize the asset portfolio are also included. Some theoretical descriptions of computational procedures applied on a fictitious life insurance company are presented in the second, more practical part of the diploma thesis