G20 names nine insurers that likely will need more capital
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LONDON (Reuters) — Regulators on Thursday released an initial list of nine insurers, including American International Group Inc. and Allianz S.E., that have been deemed globally significant and will likely have to meet new capital requirements.
The G20 contends the insurance sector poses just the same sort of potential systemic risks as do the banks. Problems at AIG in 2008 illustrated the threat, after the U.S.-based insurer had to be bailed out by the taxpayer in one of the biggest rescues following the credit crunch.
Under the plans set out by the International Association of Insurance Supervisors, insurers will be subject to tougher supervision and will have to show by 2015 how they can be wound up smoothly in a crisis, without relying on taxpayer bailouts, the body said in a statement.
The Financial Stability Board, the G20's regulatory task force, on Thursday published a list of insurers coming under the scope of the new rules.
The firms named on Thursday were:
•Allianz
•AIG
•Assicurazioni Generali S.p.A.
•Aviva P.L.C.
•Axa S.A.
•MetLife Inc
•Ping An Insurance (Group) Co. of China Ltd.
•Prudential Financial Inc.
•Prudential P.L.C.
Reinsurers won't be named until July 2014 as more time is needed to analyze them.
