L&G mulls leaving Europe ahead of Solvency II

Sources close to the company say any move would be made over the longer term, and would not involve removing the bulk of its staff to a new destination. Under the Solvency II proposals, annuity providers like L&G will be hard hit because of the need to match liabilities to bond yields. There is a concern this will increase the volatility of balance sheets and force companies to raise capital levels. The Association of British Insurers wrote to Chancellor Alistair Darling earlier this year saying the "extreme" EU plans could raise capital and reserve requirements of British insurers by...