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Controversial Buyback Bonanza Looms as UK Rewrites Insurer Rules

Aug. 5, 2022, 8:30 AM

Insurers would potentially be able to use billions of pounds of expected gains from a relaxation of capital rules for share buybacks and to pay dividends, under plans by both candidates to succeed Boris Johnson as UK prime minister.

Foreign Secretary Liz Truss and former Chancellor of the Exchequer Rishi Sunakhave both said overhauling Solvency II capital requirements, a legacy of the UK’s European Union membership, is a key part of a drive to boost the UK’s competitiveness. But people with knowledge of the candidates’ thinking said they wouldn’t limit what the cash could be used for.

The government ...