European insurers’ gross written premium grew 1.6% to €1114 billion ($1572 billion) last year.

Insurance Europe, the confederation linking the various European insurance and reinsurance associations, says the result is a solid performance given uncertainty in the eurozone.

Non-life premiums were €459 billion ($648 billion), up 4% (3% at constant exchange rates), according to preliminary figures from the umbrella body for 34 insurance organisations.

The three largest segments – motor, health and property – reported increases, with the strongest growth in property.

A recovery in European capital markets raised insurers’ total investment portfolio by 10% to €8500 billion ($12,002 billion).

In a foreword to the group’s report, President Sergio Balbinot and Director-General Michaela Koller say regulation is a concern for insurers, particularly as policymakers, regulators and supervisors in different countries seek to address issues in different ways.

“The implications for insurers and their customers in terms of compliance and direct or hidden costs and effects are significant.”

European insurers have supported Solvency II’s aim to introduce harmonised, risk-based regulation, greater customer protection and good risk management, they say.

But vital issues need resolving, such as the calculation of hypothetical shocks to the economic value of some asset classes, which could discourage some forms of investment.

“The current proposals also ignore the very significant difference between trading bonds and holding them to maturity, as insurers generally do, to ride out market volatility.”

Insurance Europe says it is optimistic that ways can be found to stop new regulation unintentionally harming insurers’ role as long-term investors.