Almost £100 billion could be invested in green infrastructure and other projects if the government tweaks the capital rules for insurers as part of its post-Brexit reforms, according to a report. Changes to the Solvency II regime in two areas could free the capital, according to an analysis by KPMG on behalf of the Association of British Insurers. The call comes before a decision by the Treasury in the next few months on whether to make changes to Solvency II, which was created by the European Union in 2016 in the wake of the financial crisis. The rules have been at the top of the list of changes that many in the City want as the UK diverges in some areas from the EU, as they are widely seen as overly bureaucratic and ill-suited to Britain’s insurance industry. However, some — including regulators — are wary about a push from the insurance sector for a widespread rolling back of regulations.
Times 23rd Feb 2021 read more »
There’s growth in green energy. When the SDCL Energy Efficiency Income Trust listed its shares in December 2018, it was worth £100 million. Fast-forward to today and it is worth more than £700 million and is a potential candidate for inclusion in the FTSE 250 in the next index reshuffle. If there’s scepticism, too, about renewable energy — the bumper £900 million paid by BP for the option to build offshore two wind farms has prompted suspicions of a bubble in the market — the trust, more widely known as Seeit, claims to be different, the first investment company to focus on assets that reduce wasted power. Rather than buying into sprawling fields of wind or solar power generators whose earnings are exposed to wholesale prices, it invests in an array of energy ventures located almost exclusively at the places to which they are supplying power and with revenues are not linked to the grid.
Times 23rd Feb 2021 read more »