And, as so often happens, our friends on the Continent have adopted a more — shall we say — patriotic interpretation for their companies than we Brits.
The result is that the way Solvency II is calculated by the sticklers at Britain’s Prudential Regulatory Authority makes our firms look weaker than their Continental rivals for no good reason.
UK insurers have been extremely cross about this, with sources in the Pru muttering occasionally about considering moving headquarters to Asia.
But, despite all the fuss, the Pru’s capital ratio today came in at a decent 190% — a far better score than analysts had expected and a healthy start for new boss Mike Wells. Dividend saved!
Given that many investors had considered the Pru among the most vulnerable to the new measuring stick, we can assume others won’t be badly hit either.
However, it still doesn’t look great next to Allianz of Germany’s gleaming 200% and Axa’s smug 212% score in France.
British firms are less than happy with their regulator. On Friday, the PRA’s insurance boss, Sam Woods — sensing a kicking coming his way — admitted his interpretation of certain Solvency II rules was tougher than his peers’ on the Continent. He suggested regulations be reformed yet again.
Here’s an alternative suggestion, and one we should apply to many other imperfect Brussels rules: just bend them a little. It’s how Europe works.
Nice when it stops
Remember how beautifully quiet London’s skies were when that Icelandic volcano grounded the world’s planes?
It felt rather similar this morning when Twitter went down. While online marketing and advertising types will have been furious about all that lost business, the rest of us glimpsed the possibilities of a world with a little less Katie Hopkins. #bliss.
