UK regulator says capital levels at insurers "appropriate"

LONDON, July 9 (Reuters) - Britain will not use new EU insurance rules to force the sector to top up on capital as the system already has an appropriate amount, the country's top insurance regulator said on Thursday.

The new EU capital rules for insurers, known as Solvency II, take effect in January.

"I have heard from some a concern that we will use Solvency II to increase levels of capitalisation across the sector, or that we are seeking to load the sector with more capital now so that it is baked into the new regime once operational," said Sam Woods, executive director of insurance supervision at the Bank of England.

"Let me state very simply: there is no such plan within the Bank of England. The reason for this is also simple: we think that our current regime secures an appropriate level of capitalisation for the insurance sector and puts us in a good position to make the shift to Solvency II," he told a conference. (Reporting by Huw Jones; Editing by Pravin Char)