UPDATE 1-Bank of England approves capital models for 19 UK insurers

(Adds list, detail)

By Carolyn Cohn

LONDON Dec 5 Britain’s best two insurers Aviva and Prudential along with the Lloyd’s of London insurance coverage market place have been amongst the 19 firms whose capital calculation models the Bank of England authorized on Saturday.

Approval signifies the named insurers can use in-property internal models to determine how a lot capital they should hold to safeguard policyholder commitments below new European Union Solvency II capital rules that come into force next month.

With no endorsement, firms should use a standard calculation approach of their solvency set out by regulators, which typically leads to greater capital specifications.

“Going forward we will monitor insurers’ models very carefully in order to make certain they continue to deliver an suitable level of capital,” Andrew Bailey, chief executive of the Bank of England’s Prudential Regulation Authority, stated in a statement.

The insurers authorized incorporate all the FTSE 100 insurers which submitted their internal models, along with Scottish Widows, a unit of UK bank Lloyds. The Bank of England had stated “about 20” models had been submitted for approval.

The following insurers’ models were approved:

Amlin Plc

Aspen Insurance UK Ltd

Aviva Plc

British Gas Insurance Ltd

Just Retirement Ltd

Legal & Basic Group Plc

Markel International Insurance coverage Company Ltd

MBIA UK Insurance Ltd

The National Farmers’ Union Mutual Insurance Society Ltd

Pacific Life Re Ltd

Pension Insurance coverage Corporation Plc

Phoenix Group

Prudential Plc

QBE European Operations Plc

RSA Insurance Group Plc

Scottish Widows Group

Society of Lloyd’s

Normal Life Plc

Unum European Holding Company (Further reporting by Huw Jones Editing by Keith Weir)