Solvency II reporting: Solvency & Financial Condition Report
Under Solvency II Pillar 3 regulations Aegon and other insurers are required to publish what’s known as a Solvency and Financial Condition (SFCR) Report. The full report can be found below and will be published annually. The insurance entity within the Aegon UK Group is called Scottish Equitable plc and this report is designed to inform its stakeholders of the following:
- A. Business and Performance
- This section gives an overview of the Scottish Equitable business and underwriting, investment and other activity performance over the year.
- B. System of Governance
- This section gives general information on the systems of governance and covers the fit and proper persons requirements and the company’s risk management system including the Own Risk and Solvency Assessment (ORSA). It also covers functions such as internal audit, actuarial and outsourcing arrangements.
- C. Risk Profile
- This section covers risk categories including underwriting, market, credit, liquidity and operational risk.
- D. Valuation for Solvency Purposes
- This section explains the methodology differences between IFRS and Solvency II, and provides a reconciliation between the two, identifying classification and valuation differences.
- E. Capital Management
- This section provides an analysis and explanation of our Own Funds, Solvency Capital Requirement and Minimum Capital Requirement, and explains the differences between the standard formula and our internal model.