I’m a Finance Director (FD) – I just want some quick facts about my insurers

We often find that FDs do not have simple financial facts about their insurance risk transfer partners; common questions we get are “How big are they?” (Total Assets, Total Liabilities, Net Assets), “What’s their Income?” (Gross Written Premium) and “How solvent are they?” (SCR Ratio)

So, here are some quick published financial facts about common insurers we come across, which is a small subset of the information which is easily and publicly available which should be used to choose an insurer.

Common Insurer Name/ Alias Insurer Full Legal Name Year Reported Solvency II Values Assets, Liabilities, Net Assets £bn Gross Written Premium (GWP) (non-life) £bn Solvency Coverage Ratio (SCR Ratio) / Capital Coverage Ratio (CCR)
AIG
AIG Europe Limited 2016 12.9 9.8 3.1 4.9 108%
2017 13.7 10.7 3.0 5.3 146%
2018 14.7 11.7 3.0 5.4 129%
Aspen Aspen Insurance UK Limited 2016 3.3 2.5 0.8 1.2 152%
2017 3.3 2.7 0.6 1.1 134%
2018 3.3 2.7 0.6 1.2 125%
AVIVA AVIVA Insurance Limited (previous merger of NU, CU,GA) 2016 13.7 11.4 2.3 5.1 210%
2017 13.5 11.3 2.3 5.3 198%
2018 12.7 10.6 2.1 5.4 158%
Protector Protector Forsikring ASA 2016 0.9 0.7 0.2 0.3 163%
2017 1.1 0.9 0.3 0.3 199%
2018 1.1 1.0 0.2 0.4 175%
QBE QBE UK Limited (formerly QBE Insurance [Europe] Limited) 2016 5.2 3.9 1.3 1.4 140%
2017 5.2 3.9 1.2 1.3 124%
2018 5.0 3.9 1.1 1.4 127%
TICL/Travelers Travelers Insurance Company Limited 2016 1.2 0.8 0.4 0.2 134%
2017 1.2 0.8 0.4 0.2 141%
2018 1.2 0.8 0.5 0.3 167%
XL Catlin XL Catlin Insurance Company UK Limited 2016 0.8 0.7 0.2 0.4 143%
2017 0.8 0.7 0.2 0.3 191%
2018 0.9 0.8 0.2 0.3 136%
ZM/Zurich/ZIP Zurich Insurance plc (based in Ireland) 2016 19.2 17.0 2.2 6.9 132%
2017 19.4 17.2 2.2 6.8 135%
2018 19.1 17.1 2.1 7.0 143%

Our top 5 points to watch are:

  1. Some insurers may have EU Holding companies/non-EU parent companies, able to provide additional financial support
  2. Your actual risks may have been placed with a separate Lloyd’s syndicate, owed by one of the above, but subject to separate Lloyd’s of London Solvency II reporting/capital requirements
  3. Your actual insurer must be named in your policy documents; many clients incorrectly name their broker as the insurer
  4. All UK insurers (and Lloyd’s in aggregate) must publish Solvency & Financial Condition Reports (SFCRs) annually
  5. Insurers’ names and financial conditions can change over time, so they should both be monitored for as long as a claim is possible under your policy, to ensure that you have an up-to-date assessment of your insurance asset quality

We cover these under “IV: Your Best Provider”, “V: Your Money” and “VI: Your Review Process”

Source: InsuranceRiskData: www.insuranceriskdata.com, a subscription-only database we subscribe to.

  • Assets: QRT: S.02.01.02.01 (Solvency II Balance sheet), R0500, Total assets, C0010
  • Liabilities: QRT: S.02.01.02.01 (Solvency II Balance sheet), R0900, Total Liabilities, C0010
  • Net Assets: QRT: S.02.01.02.01 (Solvency II Balance sheet), R1000, Excess of assets over liabilities, C0010
  • GWP: QRT: S.05.01.02.01 (Premiums..Non-life), R0110 (Direct) + R0120 (Propn Reins) + R0130 (Non-propn reins), C0020
  • SCR Ratio: QRT: S.23.01.01.01 (Own Funds (solo)), R0620, Ratio of Eligible own funds to SCR, C0010

The InsuranceInspect Services approach to Insurance Buying

Stage Purpose
I. Your Past What can you learn from your past? How much profit have insurers made from you?
II. Your Future What can happen in your future? How likely are large claims really? What’s the best way to pay for them?
III. Your CustomMade Product Is an off-the-shelf policy right for you? What are the alternatives? Why insure in the first place?
IV. Your Best Providers Is the brokers’ panel comprehensive enough? How much are they being paid? What if you need a bespoke solution?
V. Your Money Where does your money go? Offshore? Tax Haven? Who is your actual insurer? What about your claimants?
VI: Your Review Process How do you know that you made the right decision at the last renewal? What information do you need?

“Ask John to perform his version of search and destroy on your premiums”

“Ask John to perform his version of search and destroy on your premiums”