The simplification of the ranking of insurance companies based upon their solvency rate has helped the leading players in this industry relax, as they no longer have to worry about attaining a higher solvency rate, and instead can try to put their available capital to the best possible use. The rules were simplified upon the request of the insurance companies and in order to come into line with the EU regulations. At present, if the result 'R' representing the insurer's solvency margin/minimum solvency margin ratio is below one, the company in question is considered insolvent; if R is above one, the company is solvent. Insurers used to be checked against more R categories before 2002, with solvent companies falling into one of the following brackets: low risk, high risk, or no risk, depending on where R was placed between 1 and 2. Maintaining a high solvency rate eats into the capital of an insurance company, as a great deal of its assets have to be maintained in liquid form. Subsequently, ING Asigurari, Allianz-Tiriac, Omniasig, AIG Life, Ardaf and Asiban ended 2003 with a lower solvency rate than in 2002. ZF
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