12 Dec 2023
Commenting on the Solvency UK Statutory Instruments presented to Parliament, with the first scheduled to come into force on 31st December, Sir Nigel Wilson, Group CEO of Legal & General said:
"The passage of the first phase of Solvency UK reforms into law will be a pivotal moment in reforming the prudential framework for insurers, and we commend the Treasury and PRA for completing this to the agreed timetable. This is the first step in delivering a regime that will uphold policy holder security whilst enabling greater investment into productive assets, and with it unlock a huge opportunity to drive growth, regenerate and level up the UK.
Phase two in 2024 will be another critical lever, moving beyond assets with fixed cash flow to enable in addition investment in assets that have a highly predictable cash flow. This will further stimulate growth and productivity by allowing Legal & General and others to invest in new, broader asset classes, and support the PRA to deliver their new competitiveness and growth objectives."
* Legal & General expects changes to the Solvency II Risk Margin to reduce its 2023 new business strain by c£140m.