Aegon CEO warns of EU exit ahead of Solvency II

Alex Wynaendts told a conference in London yesterday the demands of the European-wide capital regime risks making the EU a less attractive base for the insurer's business.

Aegon's CEO told delegates he is in talks with regulators to ensure a "level-playing field" with global providers, but says exiting Europe is another option open to the insurer, Reuters reports.

"We are saying to our regulators if we want to be able to compete globally, we have to make sure there is a level playing field.

"One option is of course changing our business model but I don't think that is the only option we have. The reality is we have other options, and they include for example redomiciliation."

However, he says Aegon is not currently working on a redomiciliation plan.

This week, Aegon announced it will retain its UK life insurance and protection businesses after outlining the latest stage of plans to cut costs by 25%.

It has closed its third party pensions administration and employee benefits software businesses as it says they are not central to its future proposition.

Solvency II, scheduled to come into force in January 2013, aims to make insurers more financially resilient by matching their capital reserves more closely to the risks they face.

The insurance industry is concerned the rules will result in an overall increase in capital requirements, putting European insurers at a disadvantage in global markets.

 

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