Statement from Mary Francis, Director General of the ABI (Association of British Insurers), in response to today’s letter from John Tiner of the FSA to Chief Executives of Life Insurance Companies.

“The FSA has introduced a welcome element of flexibility whilst preserving strong regulation.

“John Tiner’s letter recognises that insurers have substantial reserves, over and above the funds they need to meet all liabilities to their policyholders.

“This should ensure that insurers will not have to sell equities when that is not in the best long-term interests of their policyholders.”

Ends

Notes

Note for Editors
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2. The ABI is the trade association for Britain’s insurance industry. Its more than 400 member companies provide over 97% of the insurance business in the UK. We represent insurance companies to the Government, and to the regulatory and other agencies, and provide a wide range of services to our members. ABI member companies account for more than a fifth of investments in the London stock market.

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Copies of all ABI news releases, together with other information from the Association, can be seen on our website at http://www.abi.org.uk