Aegon and Axa demonstrate tier one uncertainty

Deals by insurers Aegon and Axa have highlighted the divergence among European regulatory approaches to tier one capital, even as an EU Directive on the issue is planned. On Friday October 8 Dutch life insurance company Aegon priced a tap of the tier one deal it structured in June. Although tier one does not yet strictly exist for Dutch insurers, the structure of the deal anticipates the EU Directive Solvency II, which will harmonize capital tiering for insurance companies. The Directive is in the consultation process with a framework expected to be published next year.