Swiss Re splits into three
Swiss Re says changes to its corporate structure make it more competitive as the European Union synchronises its regulatory platform for the reinsurance industry.
The global reinsurer announced last week it will create three separate legal entities as “risk carriers” for its European reinsurance and insurance businesses, based in Luxembourg.
Swiss Re says the new legal structure will improve the alignment of regulatory and economic capital requirements and will not affect existing operations.
In 2005, the European Union approved the so-called Reinsurance Directive to bring the reinsurance industry under one regulatory banner. The standardising of reinsurance regulation is expected to be finalised by mid-next year.
Under the directive, reinsurers can operate anywhere in the EU using a regulatory “passport” and reporting to their home state. By removing deposit requirements in France, Spain and Portugal the legislation also allows companies to cut costs.
The global reinsurer announced last week it will create three separate legal entities as “risk carriers” for its European reinsurance and insurance businesses, based in Luxembourg.
Swiss Re says the new legal structure will improve the alignment of regulatory and economic capital requirements and will not affect existing operations.
In 2005, the European Union approved the so-called Reinsurance Directive to bring the reinsurance industry under one regulatory banner. The standardising of reinsurance regulation is expected to be finalised by mid-next year.
Under the directive, reinsurers can operate anywhere in the EU using a regulatory “passport” and reporting to their home state. By removing deposit requirements in France, Spain and Portugal the legislation also allows companies to cut costs.