Solvency II could alter product mix of US subsidiaries of European insurers

The heavy capital penalties imposed by Solvency II for spread-based products and those with heavy guarantees are likely to see a further retrenchment from these products in the US by the American arms of European firms, according to a report by rating agency Moody’s.

The US subsidiaries of Netherlands’-based insurers Aegon and ING have already decreased their exposure, or derisked their approach to these products following a series of problems during the financial crisis.

However, Moody’s argues