capital requirements News

Global Regulators Delay, Rethink ‘Too-Big-to-Fail’ Designation for Insurers

Global insurance regulators will put off singling out insurers deemed so important to the financial system that they are required to hold extra capital, in a victory for companies such as American International Group and Prudential. The International Association of …

Update: China Plans to Hike Number of Financial Institutions Deemed Too-Big-to-Fail

Chinese authorities said they will designate more financial institutions as systemically important, a sign that policy makers are stepping up crisis-prevention efforts as the nation’s debt burden and financial risks swell to unprecedented levels. Financial regulators led by China’s central …

Nigerian Regulator Triples Insurers’ Minimum Capital Requirement

Nigeria increased the minimum capital requirement for insurers by threefold, in a bid to expand their capacity to handle risk in Africa’s biggest oil producer. The National Insurance Commission requires the new levels of capital by Jan. 1, according to …

Bank of England Will Not ‘Go Soft’ on Enforcing EU Solvency II Capital Rules

The Bank of England will not “go soft” on enforcing European Union capital rules for insurers, but will look at ways to make it easier for new entrants to boost competition in the industry, its deputy governor Sam Woods said …

EU Wants Insurers to Plug Investment Gap, but Bank Partners Needed: Regulator

Efforts to get insurers to plug Europe’s investment gap by backing riskier assets could be undermined if banks are unwilling to share crucial credit data with them, a European Union insurance regulator said. EU insurance capital rules known as Solvency …

EU Solvency II Rules Need ‘Tweaks,’ Not Overhaul: Bank of England

EU capital rules for insurers need some tweaks but are not a deterrent to investment in infrastructure as some insurers’ claim, the Bank of England said on Wednesday. Officials from Aviva and Legal & General, two of Britain’s biggest insurers …

Fed Proposal Would Hike Capital Requirements to Discourage ‘Too Big to Fail’

Minneapolis Federal Reserve President Neel Kashkari unveiled a plan on Wednesday to prevent future government bailouts by forcing the largest U.S. banks to hold so much capital that they would probably decide to break themselves up. Kashkari’s plan would also …

Canada’s Regulator Tightens Capital Requirements for Mortgage Insurers

Canada’s financial services regulator released new draft capital requirements for federally regulated mortgage insurers to better reflect growing risks in the country’s housing markets. The Office of the Superintendent of Financial Institutions said Friday the new requirements, which will come …

Norwegian Insurer Eyes First Sale of Industry’s Riskiest Bonds

Gjensidige Forsikring ASA is on track to become the first insurer to issue a new type of bond that will become the industry’s riskiest debt. The Norwegian company may sell as much as 1 billion kroner ($120 million) of so-called …

Mutual Insurers Regain Some Global Market Share, but Threats Remain: Swiss Re

Mutual insurance companies have gained back some of the global market share they lost due to demutualizations in recent years. Those gains are threatened, however, by new financial regulations, changes in corporate governance and new technology, Swiss Re said in …