The protracted talks on new European Union capitaladequacy rules for insurers are likely to be concluded next month,two sources involved said on Thursday.

Representatives from the European Parliament and EU states meton Thursday for only an hour in Strasbourg, France where theparliament holds a monthly plenary meeting.

Only the pressure of other parliamentary business meant therewas not enough time to discuss in detail outstanding issues to getan outline deal, the sources said.

"We are on track for conclusion on November 13," one of thesources said.

After pressure from Germany, France and Britain, the finalpackage is expected to weaken a compromise put forward by EUinsurance regulators on how much capital is needed to coverproducts offering guaranteed long-term returns.

The EU has been deadlocked over the draft law, known as SolvencyII, for several years but pressure is mounting for a deal to beformally voted on next February before parliament turns itsattention to elections due in May.

The new insurance rules will come into effect from the start of2016 with the industry set to get lengthy phase-in periods of about16 years for some elements.