BoE to name UK insurers that can use models to calculate capital

LONDON, Dec 3 (Reuters) - The Bank of England will tellBritain's insurers on Saturday whether the models they use undernew European Union rules to calculate their capital requirementshave been approved.

The "Solvency II" rules allow insurers to use in-housemodels from January to determine how much capital they must holdto cover policyholder commitments.

Regulatory approval is needed for their use.

"On Saturday 5 December the Bank of England will publish alist of insurers whose internal models or partial internalmodels have been approved for use under Solvency II from 1January 2016," the BoE said in a statement on Thursday.

Without the green light, an insurer must use the "standardformula" which typically would require a higher amount ofexpensive capital to be held.

The BoE has said about 20 models are expected to beapproved.

(Reporting by Huw Jones, editing by Carolyn Cohn)