Banks Have Unfair Edge Over Insurers in M&A Race, NN CEO Says

A top European insurance executive slammed a piece of regulation that has emerged as key driver behind a recent slate of asset management acquisitions by banks.

The rule known as Danish Compromise gives the region’s lenders “an advantage” when buying investment units, NN Group NV Chief Executive Officer David Knibbe said in an interview at the World Economic Forum in Davos. He has complained about the issue to several European regulators, he said.

The Danish Compromise allows banks to reduce the hit to their regulatory capital levels if they buy an asset management firm through an insurance subsidiary. BNP Paribas ...