Solvency II concerns force AXA to scrap enhanced annuity

By William Robins
14:14:59
20 January 2010

AXA has scrapped its enhanced annuity product over concerns about EU rules on capital reserves

AXA will no longer offer its annuity product as a result of uncertainty created by Solvency II, new rules due to be introduced in 2012 which will require insurers to hold more capital in reserve. The withdrawal is the result of a pilot scheme with a small number of providers in the enhanced annuity product space.


‘The pilot was launched to look at the appetite for products like this and to see how it would fit in with AXA’s other products in the retirement arena. But there were worries about Solvency II requirements about how much capital had too be kept in reserve, so the attractiveness for providers and customers was not high,’ said an AXA spokesman.

The pilot ran from November 2007 until this month when product applications will close