This was mainly justified by the global collapse of trade that worsened short term economic outlook to a previously unimaginable extent. Hungary as a small, open economy was hit particularly hard by fall in external demand. On top of this adverse external impact, the  BIS Review 118/2009  1  sizeable fiscal consolidation further deteriorated short term GDP outlook.
As we know, Solvency II introduced the principle that insurers’ assets – on which the solvency capital requirement is calculated − must be valued according to riskiness, instrument by instrument. The metrics are very granular and complex even when using the simplest of the three permitted methods, i.e. the standard formula.