Aug 9, 2022

L&G: Solvency II reform would hurt as well as help

The latest proposals could hurt companies such as FTSE 100-listed L&G, which published a strong set of interim results on Tuesday. L&G boss Nigel Wilson has been lobbying for an overhaul of the Solvency II rules that would unlock capital to invest in levelling-up projects, infrastructure and green assets. As things stand, the revision of the rules would have a negative impact on L&G's solvency ratio of 5 percentage points, according to UBS. It is particularly affected because of its large annuity business. Insurers' solvency ratios are high enough for them to consider M&A, deleveraging and increasing returns to shareholders. A recession would bring interest rates - and the solvency ratio - back down.

Read the full story

 Related companies

Make a complaint about LG by viewing their customer service contacts.