Prudential Signals Cut Back in U.K. Annuity Business on Returns
- Prudential CFO says capital better deployed elsewhere
- Prudential says strategy, dividend unchanged from Solvency II
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Prudential Plc signaled it may start to cut back its annuities business in the U.K., saying the extra capital required under new European insurance regulations may be better deployed elsewhere.
New laws require insurers to hold more reserves than previously against certain risks such as annuities. Britain’s largest insurer reported a Solvency II ratio of 190 percent on Tuesday, meaning it has almost double the amount of capital required by the regulator to withstand a one-in-200 year shock.