LONDON (Reuters) – Life insurers selling higher-risk products like annuities are moving to reinsure or hedge this business outside Europe to soften the impact of new capital rules which could add hundreds of millions of pounds to their costs.
The new European rules, known as Solvency II, which come into force in January, will require European insurers to set aside more capital against annuities, which give pensioners a fixed income for life and are considered higher risk because they are long-term products and people are living longer.
LONDON, Oct 7 (Reuters) – The head of Britain’s fund
industry trade body quit his job on Wednesday following reports
that several firms were on the verge of leaving the
Daniel Godfrey, chief executive of the Investment
Association, was leaving with immediate effect, the body said in
a statement, giving no explanation for his abrupt departure.
LONDON, Oct 1 (Reuters) – Lloyd’s of London and other
insurers called for collective action to address climate change
on Thursday, after a report from the UK regulator this week
highlighted risks to their industry from global warming.
In an open letter to Bank of England Governor Mark Carney,
15 senior insurance executives said they welcomed the Prudential
Regulation Authority’s (PRA) report, which said the insurance
industry could be hit by climate change in “diverse, complex and
LONDON, Sept 29 (Reuters) – Contamination from chemicals is
likely to increase the cost to insurers of last month’s blasts
in the Chinese port of Tianjin, costs which are already expected
to exceed $3 billion, insurance specialists say.
While Chinese insurers are likely to bear the brunt, global
insurers and reinsurers are also expected to set aside reserves
for the quarter ending in September to cover any payouts for the
Aug. 12 explosions, which killed more than 160 people.
ZURICH/LONDON (Reuters) – Zurich Insurance abandoned its proposed 5.6 billion pound bid for Britain’s RSA on Monday, after forecasting a $200 million ( 129 million pounds) third-quarter loss largely due to the devastating explosions at the Chinese port of Tianjin.
A day before a bid deadline under British takeover rules, Zurich said it would conduct a review to improve the performance of its general insurance business, instead of taking over its London-listed rival, sending RSA shares down by as much 23 percent.
ZURICH/LONDON, Sept 21 (Reuters) – Zurich Insurance
abandoned its proposed 5.6 billion pound ($8.7
billion) bid for Britain’s RSA on Monday, after
forecasting a $200 million third-quarter loss largely due to the
devastating explosions at the Chinese port of Tianjin.
A day before a bid deadline under British takeover rules,
Zurich said it would conduct a review to improve the performance
of its general insurance business, instead of taking over its
London-listed rival, sending RSA shares down by as much 23
(Reuters) – Phoenix Group Holdings (PHNX.L: Quote, Profile, Research, Stock Buzz), Britain’s largest owner of life assurance funds closed to new customers, is in talks to buy Guardian Financial Services, it said on Thursday, although analysts say uncertainty over new capital requirements for European insurers could delay any agreement.
The move comes as life insurers in the UK are also having to adapt to an overhaul of taxation rules which effectively give retirees more control over their pension pots, no longer compelling them to buy annuities on retirement.
LONDON/FRANKFURT (Reuters) – A prolonged decline in global reinsurance prices is spurring merger moves in the sector, with many executives attending next week’s annual industry meeting in Monte Carlo eyeing who might next become predator or prey.
While the $600 billion industry, which helps insurers shoulder the burden of losses on costly events such as hurricanes and floods, is expected to see price declines slow to less than 10 percent next year, a hoped-for stabilization in prices may come too late for many.
Sept 8 (Reuters) – British insurer RSA is selling
its Latin American operations to Colombia’s GrupoSura
for 403 million pounds ($617 million) in a deal that could ease
RSA’s own takeover by Zurich Insurance.
The sale is the latest move by Chief Executive Stephen
Hester to sell off non-core assets and shore up the firm’s
balance sheet. It comes after RSA received a friendly takeover
approach from rival Zurich Insurance.
LONDON/FRANKFURT, Sept 3 (Reuters) – A drop in capital
buffers reported by Dutch insurers has raised concern over how
well prepared the broader European industry is for revised rules
on the amount of money they need to hold in case of market
Nationalised Dutch insurer ASR said last week its available
capital would fall sharply under the Solvency II rules coming
into force in Jan. 2016. Similar warnings from listed Dutch
companies Aegon and Delta Lloyd.
prompted steep falls in their share prices.