This is particularly important for companies such as life insurers which offer products with long-term guarantees. It means that investors can have greater confidence in the companies' capital adequacy planning, and their ability to free up cash to pay dividends, or for acquisitions. As a result, shares in the major life insurers - as well as closed life book consolidator Phoenix Group (PHNX) - were outperforming the market this morning.
For more on what the reform means for the industry's growth and dividend prospects, read this. Every company that applied for approval was successful: if you are curious, click here for the full list of the companies that have had sign-off.
