FRANKFURT, Germany—Most European insurers and reinsurers remain “robust,” according to a stress test by the European Insurance and Occupational Pensions Authority.

But under the test, which measured insurers' reactions to a number of stress scenarios, about 10% would fail to meet their Solvency II minimum capital requirements under the adverse macroeconomic test that EIOPA applied.

Frankfurt, Germany-based EIOPA tested the 221 participants under a number of scenarios covering market, credit and insurance-related risks.

The exercise was intended to test the European insurance and reinsurance market's resilience to shocks and how its capital position would evolve in the case of such a shock, said EIOPA Chairman Gabriel Bernadino.

Participating insurers had an aggregate solvency surplus of €425 billion ($617.36 billion) before the stress test scenarios were applied.

Double-digit declines

Under the scenario of adverse macroeconomic deterioration—based on a series of economic variables published by the European Central Bank, including interest rate and equity risks—the group's surplus fell to €275 billion ($399.47 billion), according to EIOPA. In addition, 10% of the group would fail to meet minimum capital requirements under Solvency II, the risk-based capital rules that are slated to go into effect in 2013.

Under a stress test to gauge insurers' reaction to inflation, the surplus fell to €367 billion ($533.1 billion), and 8% of participants would fail to meet their Solvency II minimum capital requirements, according to EIOPA.

Mr. Bernadino declined to name the companies that would fail to meet their minimum capital requirements and pointed out that Solvency II still is a prospective regime that has not yet been finalized.

The Brussels-based Comité Européen des Assurances, which represents insurers and reinsurers in Europe, said the test results demonstrate the industry's ability to withstand severe stress scenarios.

“It should also be borne in mind that the stress tests were based on an interim model” of Solvency II, Michaela Koller, director general of the CEA, in a statement.

“The CEA has been and continues to submit technical feedback to EIOPA and Solvency II to finalize the details of the Solvency II regime,” she added.

EIOPA backs 2013 start

When asked about possibly delaying the effective date for Solvency II, Mr. Bernadino said that while it was “clear there will be some transition period” before it is fully in effect, EIOPA still would like the regulatory regime to be in place on Jan. 1, 2013.

Study participants from the European Union, Iceland, Liechtenstein, Norway and Switzerland represented about 60% of the European insurance market, according to EIOPA.