On 15 December, the Central Bank published the second edition of the Macro Financial Review 2016. The review summarises the present state of the Irish macro-financial environment. The objective of the review is to help key stakeholders in assessing financial risks.

The findings of the review include an ease of the tension in the financial market which was apparent in early 2016. However it recognises that the risks to European financial stability still exist. Compared with the review published last year, the outlook for the non-financial corporate sector is less positive as Brexit poses a significant downside risk in this sector.

The review reports that operating challenges continue to be experienced by the domestic non-life industry. Underwriting losses in H1 2016 were reported by all of the domesticallyfocussed high-impact non-life firms. However, these losses were at lower levels than those recorded for the same period last year. The majority of the losses are concentrated in the motor insurance market. Despite this, the non-life sector retains a high overall solvency position.

A link to the review is here.