Mortgage Industry News

← Back

Good results for life insurance companies

Date: Mon, 16 May 2005

The top with-profit life assurance companies in the UK have total assets worth £347 billion, according to new data.

A study, conducted by Nottingham University Business School, examined data provided by 20 life assurors as part of their annual returns submitted to the Financial Services Authority (FSA).

The so-called "realistic" balance sheets show that the 20 companies hold surplus realistic assets of £20.7 billion - 6.33 per cent more than their realistic liabilities.

This is the first time that the FSA has required realistic balance sheets and it is hoped that it will lead to greater transparency in the industry.

Chris O'Brien, director of the Centre for Risk and Insurance Studies at Nottingham University Business School said: "The design and implementation of the new basis of calculations reflects well on the FSA, the industry and their actuaries. Some of the mystery behind with-profit business has now been removed."

"The new approach is more transparent; and it is better than the old regime in encouraging good risk management."

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.