Solvency and Financial Condition Report ("SFCR")
The new, harmonised EU-wide regulatory regime for insurance companies, known as Solvency II, came into force with effect from 1 January 2016. The regime requires new reporting and public disclosure arrangements to be put in place by insurers and some of that is required to be published on the company’s public website. This document is the first version of the Solvency and Financial Condition Report (“SFCR”) that is required to be published by UK War Risks.
The SFCR is a public report to the Club’s regulator, the PRA, and includes the following sections:
Section A: Business and Performance – provides a brief summary of the Club including performance during the Policy Year ended 20 February 2017
Section B: Systems of Governance – provides information on the governance of the Club including the internal control framework
Section C: Risk profile – provides information on key risk areas, including underwriting risk and market risk
Section D: Valuation for Solvency purposes – provides information on the valuation of the Club’s assets and liabilities within the Solvency II balance sheet
Section E: Capital Management – provides a comparison on the capital position (“eligible own funds”) of UK War Risks with the calculated capital requirement
The ultimate administrative body that has the responsibility for all of these matters is the company’s Board of Directors, with the help of various governance and control functions that it has put in place to monitor and manage the business.
The Managers would be pleased to answer any questions regarding the SFCR.