The Solvency II Pillar 3 regulatory reporting requirements came into force on 1 January 2016. Firms must produce two key reports:
i) the Solvency and Financial Condition Report (SFCR) – UK firms are required to disclose this report publicly and to report it to the Prudential Regulatory Authority (PRA) on an annual basis. The SFCR includes both qualitative and quantitative information; and
ii) the Regulatory Supervisory Report (RSR) – This is a private report to the supervisor and is not disclosed publicly. UK firms submit this report to the PRA in full at least every three years and in summary every year. The RSR includes both qualitative and quantitative information.
In addition firms must comply by the Rules set out in Policy Statement 2/15 in relation to submitting national specific templates.
Pursuant to the above requirements and specifically to Art. 51 Solvency II Directive 2009/138/EC North of England P&I Association Limited (“North”), the parent company of Sunderland Marine, publishes SFCRs for North Group and for North and Sunderland Marine Insurance Company Limited (“SMI”) which are North Group’s Solvency II regulated legal entities (solo reports). The SFCRs have been prepared in accordance with the financial reporting provisions of the PRA rules and Solvency II regulations.
Sunderland Marine Insurance Company Limited (SMI) has produced a Solvency and Financial Condition Report (SFCR) as at 20th February 2017 as required by the UK Prudential Regulation Authority. Section E of the SFCR discloses the solvency figures for SMI. The actual solvency capital is NZ$104.5m. The minimum solvency capital requirement is calculated using a risk based approach as NZ$76.8m. The solvency margin, being actual solvency capital in excess of the minimum solvency capital requirement, is NZ$27.7m and the solvency ratio is 136%.