According to Article 13 (37) of the Solvency II Directive on “Definitions", 'diversification effects' means the reduction in the risk exposure of insurance and reinsurance undertakings and groups related to the diversification of their business, resulting from the fact that the adverse outcome from one risk can be offset by a more favourable outcome from another risk, where those risks are not fully correlated. To be consistent with the definition of reduction in the risk exposure, it has to be reported as a negative value in the SCR calculation."

Please note that figure 27 of page 18 of the European Insurance Overview 2018 does not report any data regarding life vs. non-life insurers's diversification effects.