Confusion over new insurance accounting rules
The row over whether MCEV should be adopted continues, as Axa chief admits the standard is ‘confusing’.
Three of the UK’s biggest insurers have refused to adopt the controversial new Market Consistent Embedded Value (MCEV) accounting standards recently adopted by other key players.
Prudential, Legal & General and Standard Life said they would not report their full year figures under the new accounting measure MCEV.
MCEV requires the firms to use a stricter standardised system of reporting that will allow for greater comparison of their balance sheets.