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1/30/10

EU insurance watchdog's annuity report due mid-Feb

European insurance regulators need a little more time to thrash out a compromise on rules for annuity providers that UK insurers fear could force them to raise up to 50 billion pounds ($81 billion) of capital.

Regulators want insurers to put more cash aside to cover against any slide in the value of assets used to fund the annuities, but insurers believe the proposed rules would be unnecessarily restrictive.

A special task force at insurance watchdog CEIOPS is honing the rules in light of concerns at big annuity writers like Legal & General (LGEN.L), Prudential (PRU.L) and Aviva (AV.L), while remaining consistent with the overall insurer capital rules known as Solvency II.

For the complete report: EU insurance watchdog's annuity report due mid-Feb | Reuters

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