§ Mr. CousinsTo ask the Chancellor of the Exchequer what statutory provisions govern the type of securities which underpin private pension annuities; and what plans he has to review those provisions. [102446]
§ Miss Melanie Johnson[holding answer 13 December 1999]: The Insurance Companies Act 1982 and associated regulations require insurance companies to maintain appropriate assets to match their liabilities. Companies base their decisions on asset allocation on advice from their appointed actuaries. In practice, this usually means that annuity liabilities are matched by high quality longer term and low-risk, near cash instruments, often gilt-edged securities.