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UK Solvency II reform raises potential of investment portfolio restructuring: AM Best

24th November 2022

According to AM Best analysts, plans to reform the Solvency II framework for UK insurers will allow the country’s life insurers to invest in a wider array of assets, and likely lead to a higher proportion of UK-based assets underpinning the UK annuity portfolio. On 17 November 2022, the UK Treasury ... Read the full article

Reform of Solvency II to support UK insurers’ business positions: S&P

21st November 2022

S&P Global Ratings suggest that the government's announcement of its proposed change to Solvency II is likely to be neutral for the creditworthiness of rated insurers in the UK as it expects them to broadly maintain their capital positions. This report comes following the UK Government receiving widespread approval from ... Read the full article

Industry supports UK Gov’s updated position on Solvency II

17th November 2022

The UK Government has received widespread approval from the insurance and reinsurance industry today after Chancellor Jeremy Hunt promised that scrapping of certain EU rules in Solvency II reforms will “unlock tens of billions of pounds of investment across a range of sectors.” The government’s long-awaited Autumn statement, following a tumultuous ... Read the full article

Solvency II reforms could create “clear winners and losers” – WTW

25th July 2022

WTW has issued a statement on Solvency II reforms, saying that the package of reforms under consultation has the potential to create clear winners and losers if the “parametrisation” of the Matching Adjustment (MA) provisions indicated by the Prudential Regulation Authority is not recalibrated in line with SII.  In particular, ... Read the full article

Volatility in Dutch insurers’ Solvency II ratio expected to increase: Fitch

15th July 2022

Analysts at Fitch Ratings have stated that they expect volatility in Dutch insurers’ Solvency II ratios to increase, due to the insurers’ exposure to fluctuating equity and real-estate prices, as well as widening credit spreads and potential credit deterioration. The impact, however, is more emphasised for insurers with less conservative investment ... Read the full article

UK Chancellor pushing for swift Solvency II reforms

28th June 2022

UK Chancellor of the Exchequer, Rishi Sunak, has said that he aims to deliver reforms to Solvency II insurance capital rules “at pace,” following meetings with industry executives. Sunak and Economic Secretary John Glen met with senior re/insurance executives this week as part of the UK Government's ongoing consultation on post-Brexit ... Read the full article

UK Solvency II reforms won’t affect insurer ratings, says Fitch

5th May 2022

Analysts at Fitch Ratings have assured that recent proposals made by the UK Government concerning Solvency II rules are unlikely to affect the ratings of insurers. Set out in a consultation paper last month, the proposals on Solvency II include an intention to cut the risk margin for carriers, a ... Read the full article

UK Gov proposes significant cut in risk margin as part of Solvency II reforms

28th April 2022

The UK Government has published its Solvency II consultation which includes a proposal to cut the risk margin for carriers, a move that would free up a lot of capital on company balance sheets. It was announced in February by the Economic Secretary that the government planned to reform Solvency ... Read the full article

Life insurers likely to maintain capital, despite post-Brexit Solvency II reforms

24th February 2022

UK life insurers are likely to maintain strong capital commensurate with ratings despite the reduction in capital requirements born by Solvency II, says a new note from Fitch. According to the agency, the UK government announced plans in February to help free up £10bn of capital, with encouragement for it to ... Read the full article

UK Gov confirms intention to soften Solvency II regulations

22nd February 2022

The UK’s Economic Secretary to the Treasury & City Minister has confirmed that the UK Government intends to soften its Solvency II regulations for the insurance sector, in a departure from European Union (EU) standards. Speaking at an Association of British Insurers (ABI) event this week, John Glen said officials planned ... Read the full article

Insurance Europe responds to Solvency II consultation

19th January 2022

Insurance Europe has responded to the European Commission’s Better Regulation consultation, saying that while the proposals contain helpful and necessary changes, there are elements that could undermine improvements and increase costs. The response from Insurance Europe, says that while Solvency II has provided a ‘more level regulatory playing field across Europe’, ... Read the full article

EU reinsurers urge UK regulator to delay Solvency II changes

6th October 2021

Insurance Europe’s Reinsurance Advisory Board (RAB) has urged the UK’s Prudential Regulation Authority (PRA) to either extend its Temporary Permissions Regime (TPR) or wait until the Treasury's review of Solvency II is finalised before making changes to its regulatory requirements. A recent consultation conducted by the PRA outlined proposed changes to ... Read the full article

European insurers to increase ESG investments on Solvency II reform

27th September 2021

The European insurance sector’s growing interest in assets with environmental, social and governance (ESG) characteristics is likely to get a further boost from the European Commission’s proposal to lower Solvency II (S2) capital charges for longer-term business, Fitch Ratings says. Fitch's report showed that insurers are well-placed to invest in longer-term ... Read the full article

Solvency II proposals include needless costs and complexity: Insurance Europe

24th September 2021

Olav Jones, Deputy Director General of Insurance Europe, has welcomed new proposals on Solvency II by the European Commission (EC), but argued that some elements “unnecessarily increase costs and complexity” for re/insurers. Responding to the suggestion that the proposals would enable re/insurers to further contribute to Europe’s economy, he added that ... Read the full article

Reinsurers main beneficiaries of EC Solvency II review: Berenberg

23rd September 2021

Analysts at Berenberg believe that reinsurers will be the main beneficiaries of new proposal to review Solvency II rules made by the European Commission (EC). The review is largely in line with the initial proposal published by the EU regulator EIOPA in December 2020, and Berenberg notes that the framework is ... Read the full article