Prudential likely first UK insurer to announce Solvency II ratios

Posted on

Britain’s largest insurer Prudential said on Monday it would give an update on Jan 19 on its capital position under new European Union Solvency II rules, ahead of other insurers who aim to issue ratios alongside annual earnings statements.

Prudential, Aviva and the Lloyd’s of London insurance market were among 19 insurers to get the green light on Saturday for so-called “internal models” of their solvency levels.

It is expected that using internal models to calculate these positions will enable insurers to cut capital costs compared with the standard model.

Legal & General said on Monday it would give solvency details with its results on March 15, RSA said it would report them on Feb 25 and Phoenix on March 23.

“Even though some of the internal model-related overhang is over, we believe that the market would still like to see more details around headline Solvency II rules, details around assumptions going behind the calculation, and sensitivities around the Solvency II ratio,” said analysts at JPMorgan Cazenove in a client note.

Just Retirement said its merger with Partnership Assurance would close as planned during Jan 2016 following its internal model approval. (Reporting by Carolyn Cohn, editing by Sinead Cruise)

Source Reuters.