Pensions: IORP II and the elephant in the room

After almost two years of negotiation, the revised European Union Directive on the Activities and Supervision of Institutions for Occupational Retirement Provision (IORP II) comes into effect today.newPic_4681_jpg_3388340b

Member States will now have two years to incorporate it into national law.

But what is IORP II? How will it impact on occupational pension provision in the UK? And what about the elephant in room – Brexit?


IORP I came into effect in 2003, and lays down rules for activities carried out by IORPs (which, in the UK, are broadly employer-funded occupational pension schemes).

Continue Reading ” Pensions: IORP II and the elephant in the room ” at Lexology

Insurers warn of Solvency II impact

The capital regime for the insurance industry needs “fundamental” review, a committee of MPs has been told.Warning

Legal & General and Prudential both appeared before the Treasury Select Committee yesterday (25 January) to criticise the Solvency II regime.

The cross-European regime came into effect a year ago and sets out how much capital insurance companies must hold to reduce the risk of insolvency.

Continue Reading “Insurers warn of Solvency II impact ” at FT Adviser News

Insurers plan to invest €1tn with asset managers

Around €1tn of new European business is predicted to flow to asset managers from insurance companies over the next three years, providing a valuable stream of fresh profits for fund Protect Your Househouses.

According to research from Prometeia, an Italian consultancy, insurance companies are looking for help from asset managers to address the twin problems of low interest rates and stringent European rules known as Solvency II.

he consultancy has forecast that, as a result, asset managers will oversee €4.5tn on behalf of insurance company clients by…

Continue Reading “Insurers plan to invest €1tn with asset managers” at Financial Times

Are insurance rules making people work longer?

here has been plenty of controversy surrounding the EU’s impact on UK insurance laws in recent weeks. Last week we woman-at-desk-cryingrevealed that uninsured drivers are to get compensation under a new EU rule; and now a report has outlined some even more significant consequences of the EU’s regulation.

Annuities have, reportedly, become more expensive as a result of Solvency II – and that means that people are needing to work longer before they are able to retire.

The statement was made as part of a hearing at the Treasury Select Committee on the impact of Solvency II as the industry looks to relax some areas of the regime post-Brexit.

Continue Reading “Are insurance rules making people work longer?” at Insurance Business News


AIA Hails Covered Agreement; Will Benefit Insurers on Both Sides of the Atlantic

The American Insurance Association hailed the successful completion of a covered agreement on insurance and reinsurance prudential measures between the United States and European Commission. The agreement establishes mutual indexacknowledgement of prudential supervision in the European Union and the United States, which will eliminate the increasing barriers to U.S. groups operating in Europe.

The Treasury Department’s Federal Insurance Office (FIO) and the U.S. Trade Representative (USTR), which represented the U.S. in the negotiations, will now consult with and submit the agreement to four Congressional committees (House Financial Services, House Ways and Means, Senate Banking and Senate Finance) on a day when all committees are in…

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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.

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