AIG chief executive Robert Benmosche told employees on Wednesday that he "remains totally committed" to the New York-based group. Responding to a Wall Street Journal report on Tuesday that he had threatened to quit his post in frustration over the pay constraints imposed by US Treasury "pay czar" Kenneth Feinberg, Mr Benmosche sent an internal memo to employees. "Let me be clear", wrote Mr Benmosche, "I and the board remain totally committed to leading AIG through its challenges and continuing to fight on your behalf." Mr Benmosche wrote that he and AIG's board of directors "are indeed frustrated" over the Treasury's oversight of the company's outlays for compensation, calling it a "barrier that stands in the way of restoring AIG's value" and repaying its more than $80bn debt to the US government. Mr Benmosche said that the board remains in discussions with the Treasury and Mr Feinberg "to resolve the uncertainty surrounding this issue".

Insurers have said amendments to several controversial areas of advice proposed by Ceiops for Solvency II are not enough to guarantee the success of the new capital requirement regime. Ceiops, which delivered its final advice on the majority of Level 2 implementing measures to the European Commission on Tuesday, said it had taken on board several objections raised during a consultation process that attracted over 23,500 comments. Insurers voiced their concern that the implementation measures were too conservative and marked a change in the direction established in the approved Level 1 text and the risk-based principles underlying Solvency II. The European Commission itself wrote to Ceiops listing seven issues within the implementing measures that it felt were inconsistent with the Level 1 text. Ceiops has modified some areas of its advice and it has agreed to conduct further work in areas such as the assessment of technical provisions, which currently restrict the inclusion of future premiums and do not include an illiquidity premium for the discount rate. However, it has held firm on controversial proposals to limit different tiers of capital. Responding to the final advice, the Association of British Insurers (ABI) said Ceiops had recognized that some of its proposals were "unsuitable", including the removal of the liquidity premium. However, the ABI said this has only been reinstated for business-in-force: "More progress is needed here," it said. Peter Vipond of the ABI said: "There is still much to do to deliver a successful outcome for Solvency II."

Dutch insurer Aegon confirmed that it will repay €1bn of the €3bn it owes the Dutch government in state aid received last year by November 30, 2009. Announcing a return to profit in its third quarter results for 2009, Aegon said it will repay one-third of the debt from the proceeds of a €1bn equity issue completed in August. The group reported net profit of €145m for Q3 2009 following last year's loss of €329m. However, it said underlying earnings before tax of €351m were impacted by lower equity markets, de-risking measures and €66m of exceptional charges. Impairments were down on last year at €285m following lower impairments on US housing market related assets. Aegon said it has already achieved its cost savings target for the year of €150m.

Brit Insurance has told shareholders that its planned move of the group's holding company from the UK to the Netherlands will drive its plans for international growth, enhance access to capital and "should be able to better align its corporate tax rate with those of its global peer group". In a circular to its shareholders seeking their approval for the redomicile, Brit said: "Dutch companies pay no additional tax on the majority of overseas earnings and enjoy a pragmatic regime dealing with income arising overseas." Brit will establish Brit Insurance Holdings NV as the group's new holding company by way of a court sanctioned scheme of arrangement. The new holding company will be incorporated in the Netherlands where it will pay tax but it will be listed in the UK where existing Brit shares will be cancelled and replaced with the New Brit stock. The company said its new location in the Netherlands will provide "a stable commercial, legal, regulatory and fiscal environment from which to operate". It added that the Netherlands will be a good base from which to expand its "international footprint" from its current presence including the US and Japan. Brit first unveiled its plans to redomicile in March 2009. It is seeking shareholder support for the scheme of arrangement in time for the new shares to begin trading on December 21, 2009.