British regulator the Financial Services Authority says it is talking to Europe's biggest mutual insurer Standard Life about its balance sheet calculations.
'There has been a high level of engagement between the company and the FSA which is close to a conclusion,' the FSA said in a statement.
The Guardian newspaper reported today that the talks concerned the introduction of new accounting rules that seem to show the group is in danger of falling below minimum solvency requirements.
The regulator, which came under pressure from the near collapse of insurer Equitable Life in 2000, is introducing new rules to ensure that investors have a clearer picture on the financial strength of insurers.
Insurers around the world have been battered by severe stock market slumps in the last two years, which has eroded the value of their investments and put pressure on their solvency levels. Standard Life reported last month a 22% fall in worldwide new business sales in 2003.
