Some of Britain's biggest life insurers should be freed from "crude" solvency rules which force them to maintain huge reserves, according to a report by the Financial Services Authority out this week, says the Guardian .
Norwich Union, Prudential, and Legal & General are expected to be told they can release capital tied up in reserves to fund growth in other areas. According to some industry analysts, Friends Provident will be the biggest winner, but Prudential, which is under intense pressure to improve its profitability in the UK, is also likely to welcome the move. The consultation document will recommend overhauling regulations which many believe impose excessive targets for capital and reserves, reports the paper. SWISS RE was yesterday linked to an audacious bid to buy part of UK insurance giant...
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