Contents of Non-Participatory Reports

For AKG Offshore Financial Strength Assessment Reports

The information currently included in each Non-Participatory Report in AKG's series of Offshore Financial Strength Assessment Reports is structured as follows:

Inside Front Cover:

About This Financial Strength Assessment

 An overview and further insight into Financial Strength and AKG's viewpoint into analysis.

Table of Contents

 A list of contents found inside the Report.

Contact Information

 AKG's address, phone number, general email address and website URL.

Rating & Assessment Commentary:

Ratings

  •  Overall Financial Strength Rating(s)

AKG’s assessment (on a scale of A, B+, B, B-, C, D) of the company’s Overall Financial Strength. See the ‘Guide to AKG Ratings’ for further details of the methodology used.

Summary

A short section consisting of bullet points which condense key contributory factors for the given rating(s) and the assessment.

Commentary

  • Strength Rating(s)

 Further explanatory commentary specifically related to the Strength Rating(s).

Company Analysis

Basic Information

  • Company Type

The generic type of company (e.g. Life Insurer).

  • Ownership & Controller

The ultimate owner and controller, which may be different, to the company (or the majority owner if there is more than one). For UK registered companies, this information is disclosed in the company’s statutory accounts. For overseas owners, the country of domicile is also shown.

  • Year Established

The year that the current corporate entity started operating, which is usually the year of incorporation.

  • Country of Registration

The country where the entity is legally constituted or formed and whose laws of business and tax it has to follow in respect of that formation.

  • Head Office

The address of the Head Office (usually defined as the location of the company’s most senior management. Need not necessarily be the company’s registered office address).

  • Contact

A contact telephone number, general email address and the URL of the brand's main website.

  • Key Personnel

A short list of the senior individuals considered to be of most interest to readers, such as chief executive, finance director etc.

  • Company Background

A broad overview of the general background of the company, including any significant historical changes such as predecessor companies, transfers/mergers, name changes etc.

  • Group Background

A broad overview of the background to the group of companies covered by the report.

Operations

An outline of key operational elements within the organisation, including that company's system of governance and how this is arranged.

Strategy

How the organisation seeks to position itself in the market including the image it aspires to and how this is achieved. This is both currently and in terms of planned future.

The organisations exisiting proposition set (products and services) and its outlook for future development.

Financials (SII Insurance Company)

  • Assets

A table showing the breakdown of the company's long-term business assets over the company's last three accounting periods, valued on a Solvency II basis.

  • Liabilities

A table showing the company’s long-term business liabilities over the company’s last three accounting periods. Liabilities are split as the following:

  • Technical Provisions - non-life
  • Technical Provisions - health (similar to life)
  • Technical Provisions - life
  • Technical Provisions - linked
  • Other

Excess of Assets over Liabilities is the amount by which Assets (from the previous table) are in excess of Liabilities, at each reporting period end.

  • Life & Health SLT Technical Provisions

Technical provisions representing the amount that the insurance company would have to pay in order to transfer its obligations immediately to another insurance company, in respect of Life or Health contracts written on a simialr technical basis as life insurance (i.e. long term business); SLT stands for "Similar to Life Techniques". The technical provisions consist of a best estimate liability and risk margin.

  • Gross Life Premiums Written By Line of Business

Gross Written Premiums (GWP) on life insurance business, broken down into each reported business line.

  • Solvency Capital Requirement (SCR)

Details of the company's solvency requirement, broken down by type of risk.

  • Own Funds

A table showing the company's Total eligible own funds to meet the SCR, classified into tiers of capital. This is shown as at the end of the last three accounting periods, as available. The excess of own funds over the SCR is also shown together with the SCR Ratio, which is a key indicator of coverage.

  • Profit

A table showing the company's profits in each of the last three accounting periods, showing, profit/loss before tax, tax, profit/loss after tax, other comprehensive income, dividends and retained profit/loss.

  • Flows

A table showing net life premiums earned and net life claims incurred together with the resultant in-flow or out-flow, being the difference between premiums and claims.

Financials (Non-SII Insurance Company)

  • Long Term Business Admissible Assets

A table showing the breakdown of the company’s long-term business assets over the company’s last three accounting periods, excluding any which are inadmissible. The table also shows free assets and the free asset ratio. The ‘excess of available assets and implicit items over the required minimum margin’ disclosed in the company’s returns is commonly referred to as the ‘free assets’. The free asset ratio is the free assets expressed as a percentage of the total long-term admissible assets. Explanatory comments from AKG are included immediately below the table.

  • Long Term Business Liabilities & Margins

A table showing the company’s long-term business liabilities and margins (both gross and net of reinsurance) over the company’s last three accounting periods, together with the required minimum margin ('RMM') for solvency margin purposes and the RMM coverage (being the free assets plus the RMM, expressed as a multiple of the RMM). The concept of ‘liabilities and margins’ is effectively defined by the regulatory disclosure requirements. The usual position is that a company’s total long-term assets (as shown in the earlier table) equals its liabilities plus any ‘margins’ it holds (such as investment reserves, and any surplus amounts carried forward inside its long-term funds). Explanatory comments from AKG are included immediately below the table.

  • Capital

A table showing the makeup of the total amount of ‘Other than long-term business assets’ available to meet the solvency margin requirements of the company’s long-term business in each of the last three accounting periods.

  • Key Revenue Items

A table showing key lines from the company’s long-term business revenue accounts over its last three accounting periods. Explanatory comments from AKG are included immediately below the table.

  • New Single Premiums

A table showing the mix of the company’s new single premium business (by product type, and by UK and Other) over the last three accounting periods.

  • New Regular Premiums

A table showing the mix of the company’s new regular premium business (by product type, and by UK and Other) over the last three accounting periods. Followed by explanatory comments from AKG about the new business product mix and trends therein.

  • AKG Comments

Explanatory comments from AKG in respect of the tables and any other relevant financial information, shown throughout, below the relevant tables.

 

Guide:

Introduction

Further explanation into Financial Strength and AKG's focus.

Rating definition

  • Overall Financial Strength Rating

 

About AKG

A brief overview of AKG as an independent organisation and how it is situated within the market.