When insurance pays dividends…..Distribution of long-term insurance profits

On 30 December 2016, the Companies Act 2006 (Distributions of Insurance Companies) Regulations 2016 (the “Regulations“) came into force. The Regulations apply to distributions made on or after that date by reference to accounts prepared for any period ending on or after 1 January 2016. dividends

A copy of the Regulations is available here. The purpose of the Regulations is to define the mechanism by which long-term insurance companies are required to calculate amount of their distributable profits, following the implementation of certain changes arising from the Solvency II Directive.

Continued Reading “When insurance pays dividends….. Distribution of long-term insurance profits ” at Lexology

Strong pipelines underpin uplift in de-risking market

Strong pipelines, greater engagement from smaller schemes and innovation driving improved buy-in affordability are some of the key developments expected to feature in the de-risking market in 2017, according to Willis Towers Watson.

EurosThe firm is predicting that over £30bn of liabilities will be insured in 2017, through buy-ins, buyouts and longevity swaps. This is a significant year-on-year increase, returning to the levels of activity observed in 2014 (£39bn) and 2015 (£18bn), following a slower 2016 (£11bn) as participants allowed for the bedding-in of Solvency II, back books distracted some market participants from new pensions transactions and events such as the referendum caused uncertainty and headwinds across the market.

Continue Reading “Strong pipelines underpin uplift in de-risking market ” at FTSE Global Markets

NN Group and Delta Lloyd agree on recommended transaction

NN Group and Delta Lloyd announce today that a conditional agreement (the ‘Merger Protocol’) has been reached on a recommended public offer (the ‘Offer’) to be made by NN Group for the entire issued and outstanding ordinary share capital of Delta Lloyd (the ‘Shares’) for EUR 5.40 in cash per ordinary Delta Lloyd share (cum dividend) (the ‘Offer Price’).delta_lloyd

This announcement follows constructive interactions between the boards and management teams of both companies including a period of targeted due diligence. Lard Friese, CEO of NN Group: ‘Today’s announcement is a significant step in our journey to build a sustainable, profitable business for the future, and to strengthen our leading position in the Netherlands and Belgium. I value the entrepreneurial spirit, customer focus, the commercial agility, and strong distribution capabilities of Delta Lloyd.

Continue Reading “NN Group and Delta Lloyd agree on recommended transaction” at NASDAQ Globe News Wire

Anthony Hilton: Relax the rules to give our insurers a chance

The season of goodwill has been characterised this year by a distinct lack of goodwill between the insurance industry and those who regulate it.relax-05

Ever since the Treasury Select Committee decided to investigate how Brexit might affect the industry and how it is regulated, the insurers have closed ranks to complain.

The regulatory problem has recently become more pressing because of developments in the US.

If President-elect Trump fulfils his promise to scale back the Dodd-Frank Act, the centrepiece of US post-crisis banking regulation, it will free up the investment banks to become active traders again on their own account.

Continue Reading “Anthony Hilton: Relax the rules to give our insurers a chance” at Evening Standard

Great expectations: The pensions market in 2017

Sammy Cooper-Smith, co-head of business development, David Land, chief investment officer, and Graham Butcher, chief underwriting officer at Rothesay Life – named insurer of the year at the Buy-Side Awards 2016 – expect de-risking and money-pensions_1974994bbuyout volumes to soar in the new year.

What are your expectations for the pensions de-risking market in 2017?

Rothesay Life: It looks as if it will be a busy year, with volumes – excluding insurer-to-insurer deals – surpassing those of 2016. 

Buyout volumes specifically, as in the full settlement of schemes, should be higher as we see a continued desire for sponsoring employers to settle a liability they have little control over and remove volatility from their balance sheets.

Continue Reading “Great expectations: The pensions market in 2017” at Risk.net

Law firms highlight potential issues with UK’s draft ILS regulations

As the UK government continues to develop and advance its ambition of turning London into a global hub for insurance-linked securities (ILS) business, international law firms have highlighted some uncertainties and potential shortcomings of the new guidelines.index

The establishment of an ILS hub in the United Kingdom has the potential to expand the reach and influence of the ILS marketplace, while increasing the relevance and position of London as a global hub for insurance and reinsurance business.

Fist discussed in March 2015, the UK Treasury has now published its draft proposals for the framework, with the UK’s financial regulators, the Prudential Regulation Authority (PRA) and the…

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What Brexit and Trump mean for compliance

Regulatory requirements across all industries are constantlytrump evolving. Rules are also becoming increasingly intricate because of the overlap involving multiple nations and jurisdictional specifics.

Both the Brexit vote and Trump’s victory have added further uncertainty about the future, leaving CIOs and IT managers in a minefield of business risks and with the responsibility to ensure their companies comply with changing legislation.

The UK voted to leave the European Union on 23 June, but will remain a member but will remain a member until the conclusion of the withdrawal – at least 2019.

Continue Reading “What Brexit and Trump mean for compliance” at Information Age

Time to scale back the role of insurance regulators?

Is it possible for regulators to become too heavily involved in the insurance business? One giant of the UK insurance sector seems to think so. Legal & General has accused a regulator of becoming increasingly interventionist in their control of the industry law-11believing that their role should be cut back.

Specifically, it highlighted the position of the Prudential Regulation Authority (PRA) in relation to Solvency II rules stating that it is “effectively overruling the judgment of the board” in relation to setting capital requirements; and that it has started to take an increasingly “directive” approach in regards to transaction approval.

“Boards do not feel empowered to make commercial decisions without reference to the regulator,” it said in a submission to the Treasury Select Committee.

Continue Reading “Time to scale back the role of insurance regulators?” at Insurance Business

Legal & General accuses regulator of increased intervention

One of the UK’s biggest insurers has accused regulators of becoming more interventionist in their oversight of the industry, suggesting the role should be scaled back.images

Legal & General said that under new Solvency II rules, the Prudential Regulation Authority is “effectively overruling the judgment of the board” when it comes to setting capital requirements, and is taking a more “directive” approach when approving transactions.

“Boards do not feel empowered to make commercial decisions without reference to the regulator,” it said.

Legal & General would like audit firms to take over some of the work carried out by the PRA, especially that related to internal capital models. “The regulator could then opine on the more strategic issues which impact its statutory objectives,” it said.

Continue Reading “Legal & General Accuses Regulator of Increased Intervention” at Financial Times Advisor

Luxembourg: Destination: Solvency II

It has been almost a year since the entry into force of Solvency II (SII), and the reporting efforts of (re)insurance undertakings and asset managers are finally converging towards business as usual….Right?

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In fact, we’re not quite ready to say so yet. Here are some

reasons why we think that Solvency II reporting’s wandering journey isn’t quite over yet.

The application and reach of the look-through provision are extensive, with (re)-insurance undertakings (IUs) being required to gather exhaustive asset-level information on their positions in collective investment undertakings to determine solvency capital requirement (SCR) figures reliably.

Continue Reading “Luxembourg: Destination: Solvency II” at Mondaq

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