Insurers protect against Solvency II disqualification with transforming instruments

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Insurers are adding new features to their hybrid debt instruments in response to continued uncertainty around Solvency II in order to protect themselves should the instruments fail to meet the requirements of the new capital rules.

Earlier this month, Aviva became the latest major insurance group to launch a hybrid bond with call features that would trigger in the event the instrument is deemed inadmissible for Tier II capital under the forthcoming Solvency II directive.

Uniqa, the Austrian insu