L&G fears for pension savings in EU reforms

Article reports that the value of UK pension savings is threatened with a sharp cut of 10-20% under the European Union's new capital rules for insurers unless they are changed, according to Legal & General, one of the UK's biggest annuity suppliers.

Tim Breedon, chief executive, said that if the Solvency II rules, which were voted into law by the European Parliament in April 2009, were introduced in their current form it would represent a 'betrayal of savers'.

However, future pensioners were warned by Axa, the French insurer, that UK retirement incomes from annuities have been too generous in the past and will be cut from current -levels once new European Solvency II rules for insurers are introduced.

ESO: Background information: Solvency http://www.europeansources.info/record/risk-management-and-supervision-of-insurance-companies-solvency-2/

Website: Legal and General Group plc http://www.legalandgeneralgroup.com/

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