Gresham Insurance Company Limited: SFCR Compendium 2016

2017

Delta from 2016

Earliest SFCR held: an active Barclays-distributed home insurer, with the majority of written premium quota-shared to AIL, on a Standard Formula basis. EOF GBP 67m as stated (GBP 66,510k per the QRT), stated ratio 1,338% (2016: 1,175% per this report's comparators).

The 2017 report is the earliest Gresham SFCR held [Note 1], and it fixes the template that persists to 2022: the Company “transacts general insurance business in the United Kingdom through a business arrangement with Barclays Bank plc”, mainly “personal lines home insurance”, with PPO-related life obligations and “the majority of written premium … ceded to the Company's immediate parent Aviva Insurance Limited (AIL), through a quota share reinsurance arrangement” [SFCR p.3]*. The SCR is calculated on “the standard formula (SF)” [SFCR p.4]*, and the trading pattern that defines the pre-2023 years is already in place: “Gross written premium fell by 9% in the year (2016: fell by 8%) because strong new business growth has not been large enough to offset a declining back book of policies as a result of a competitive home insurance market.” [SFCR p.3]* Own funds of “£67m (2016: £80m)”, all unrestricted Tier 1, give a stated ratio of “1,338% (2016: 1,175%)” [SFCR p.4]*, both years matching the QRT [QRT].

Introduction (SFCR pp. 3)

Note: Baseline purpose sentence: “The purpose of the Solvency and Financial Condition Report (SFCR) is to provide information about the capital position of Gresham Insurance Company Limited (the Company), at 31 December 2017, based on the Solvency II (SII) requirements.” [SFCR p.3]* standard text.

Business & Performance (SFCR pp. 3)

Note: Standing description established, Barclays arrangement, “personal lines home insurance”, PPO obligations, AIL quota share “with levies being excluded from this arrangement” [SFCR p.3]* standard text.

Note: PBT “£4m in the year ended 31 December 2017 (2016: profit of £6m)”, comprising underwriting profit GBP 1m, net investment income GBP nil and other-activities profit GBP 3m [SFCR p.3]*; figures in GBP m this year and in 2016.

Note: Claims and other income as stated: “Gross claims incurred of £55m (2016: £55m) were unchanged. Net claims incurred are £nil (2016: £nil) due to the reinsurance arrangement with AIL.” and “The Company received non-insurance income of £3m during the year (2016: £4m).” [SFCR p.3]*

System of Governance (SFCR pp. 3-4)

Note: The six governance bullets, with “governance over the use of the standard formula” from the outset standard text [SFCR p.3-4].

Risk Profile (SFCR pp. 4)

Note: Risk types “remain credit, market, underwriting, liquidity and operational risks” standard text, a five-risk list including market and underwriting; liquidity measured “through both absolute level targets and bespoke liquidity coverage ratios” standard text [SFCR p.4]*.

Valuation (SFCR pp. 4)

Note: SII valuation principle and BEL-plus-Risk-Margin definitions standard text standard text; excess of assets over liabilities “£67m (2016: £80m)”, “£1m (2016: £2m) higher than the value under IFRS” [SFCR p.4]*, Gresham's SII excess sits above IFRS.

Capital Management (SFCR pp. 4)

Note: “the Company has chosen to implement the standard formula (SF)” [SFCR p.4]* standard text; EOF “£67m (2016: £80m)” all unrestricted Tier 1 standard text; SCR “£5m (2016: £7m)”; surplus “£62m (2016: £73m)”; “regulatory cover ratio of 1,338% (2016: 1,175%)” [SFCR p.4]*. [QRT verified: both years match]

Headline metrics

SCR coverage (stated)1338%2016 (stated in this report): 1175%

EOF / SCR / SurplusGBP 67m / 5m / 62m2016: 80m / 7m / 73m

IFRS profit before taxGBP 4m2016: GBP 6m

GWPfell 9%2016: fell 8%

New (1)

Earliest document held: establishes the standing description, Barclays business arrangement, personal lines home insurance, PPO life obligations, AIL quota share, Standard Formula.

Changed (2)

EOF GBP 67m (2016: GBP 80m); SCR GBP 5m (2016: GBP 7m); stated ratio 1,338% (2016: 1,175%).

GWP fell 9% as new business growth failed to offset the declining back book in a competitive home market.

Outside the Summary

From section B.1.5 of the same report, Material transactions with the shareholder, persons with significant influence on the Company and members of the Board (p.11)

The quota share with AIL has run “with effect from 1 January 2006”, and “The key terms of the agreement remain: a 100% cession rate on premiums, claims costs and underwriting expense costs is applied in respect of the underwriting year; and a requirement for the Company to retain a percentage in relation to levies.” [SFCR p.11]*

Was this 2017 analysis useful or accurate?

2018

Delta from 2017

⭳ SFCR PDF

Units switch to GBP thousands; gross claims rise 12% [CALC] because 2017's benign weather was not repeated, and the SCR rises 18% [CALC] with no cause stated, easing the stated ratio to 1,223%; profit still rises to GBP 5.6m, with net investment income of GBP 1.6m (2017: negative GBP 47k).

2018 is a presentational and weather year. The Summary moves from rounded GBP millions to GBP thousands: the own funds the 2017 report gave as “£67m” are carried here as the 2017 comparator “£66,510 thousand”, against 2018 own funds of “£71,646 thousand” [SFCR p.3]*, sharpening visible precision across the capital paragraph. The trading story is claims-driven: gross claims incurred rose to “£61,632 thousand (2017: £55,169 thousand) … due to the impact of prior year benign weather in 2017 not replicated in 2018” [SFCR p.2]*, and the SCR rose 18% [CALC] to “£5,861 thousand”, easing the stated ratio to “1,223% (2017: 1,338%)” [SFCR p.3]* even as own funds grew; the Summary attributes the claims movement to the weather base effect and gives no reason at all for the SCR movement. Profit still improved to “£5,623 thousand”, with net investment income of GBP 1,608k (2017: negative GBP 47k) [SFCR p.2]*. A post-year-end capital action given outside the Summary, in section A.5, is shown in the note below this year. [QRT verified: ratio 1223%, matches]

Introduction (SFCR pp. 2)

Note: Purpose sentence unchanged from 2017 (“information about the capital position … based on the Solvency II (SII) requirements”) standard text [SFCR p.2]. The Summary begins on PDF page 2 this year.

Business & Performance (SFCR pp. 2)

Changed: Figures move to GBP thousands, PBT “£5,623 thousand … (2017: profit of £4,094 thousand)”, underwriting profit GBP 962k, net investment income GBP 1,608k, other activities GBP 3,053k [SFCR p.2]*.

Changed: “Gross written premium fell by 10% in the year (2017: fell by 9%). There were stronger new business sales compared to 2017 however, this new business growth has not been large enough to offset a declining back book of policies” [SFCR p.2]*.

Changed: Gross claims “£61,632 thousand (2017: £55,169 thousand) increased due to the impact of prior year benign weather in 2017 not replicated in 2018” [SFCR p.2]*.

System of Governance (SFCR pp. 2-3)

Note: Bullets unchanged standard text [SFCR p.2-3].

Risk Profile (SFCR pp. 3)

Note: Unchanged standard text standard text [SFCR p.3].

Valuation (SFCR pp. 3)

Changed: Excess of assets over liabilities “£71,646 thousand (2017: £66,510 thousand)”, “£1,089 thousand (2017: £508 thousand) higher than the value under IFRS” [SFCR p.3]*, the SII-vs-IFRS gap first quantified at thousand-level precision.

Capital Management (SFCR pp. 3)

Changed: EOF “£71,646 thousand (2017: £66,510 thousand)” all unrestricted Tier 1 standard text; SCR “£5,861 thousand (2017: £4,971 thousand)”; surplus “£65,786 thousand (2017: £61,539 thousand)”; “regulatory cover ratio of 1,223% (2017: 1,338%)” [SFCR p.3]*. [QRT verified: ratio 1223%, matches]

Headline metrics

SCR coverage (stated)1223%2017: 1338%

EOF / SCR / SurplusGBP 71.6m / 5.9m / 65.8m2017: 66.5m / 5.0m / 61.5m

IFRS profit before taxGBP 5,623k2017: GBP 4,094k

UnitsGBP thousands2016-2017: GBP m

Changed (3)

Presentation currency unit: figures now stated in GBP thousands (2017: GBP m).

Gross claims up to GBP 61,632k 'due to the impact of prior year benign weather in 2017 not replicated in 2018'. SCR up 18% [CALC] to GBP 5,861k, with no reason stated in the Summary.

GWP down 10% despite higher new business sales, on the declining back book.

Outside the Summary

From section A.5 of the same report, Any Other Information (p.7)

“On 11 April 2019 the Board approved a capital reduction of £51,400 thousand subject to approval by special resolution from its parent's Board. Subject to this approval, it also declared an interim dividend of £50,000 thousand.” [SFCR p.7]*

Was this 2018 analysis useful or accurate?

2019

Delta from 2018

⭳ SFCR PDF

The balance sheet is restructured: a GBP 51.4m capital reduction and GBP 50m interim dividend (both approved 11 April 2019) cut EOF by 64% [CALC] to GBP 25.5m and halve the stated ratio to 610%; COVID-19 arrives as a post-balance-sheet 'major development'.

2019 removes nearly two-thirds of Gresham's own funds in a planned restructuring: “On 11 April 2019 the Board approved a capital reduction of £51,400 thousand approved by special resolution from its parent's Board. It then also declared an interim dividend of £50,000 thousand.” [SFCR p.2]* Both the valuation and capital sections attribute the fall in EOF to “an interim dividend distribution of £50,000 thousand paid during the year” [SFCR p.3]*, leaving own funds at “£25,504 thousand” and the stated ratio at “610% (2018: 1,223%)” [SFCR p.4]*, matching the QRT [QRT]. The report carries a COVID-19 front paragraph, the PRA's “major development” framing under Article 54(1), a new appendix F.5, and a closing outlook that the impact “is not considered to give rise to material impact on 2019, but will adversely impact performance in 2020” [SFCR p.4]*.

Introduction (SFCR pp. 2)

New: The COVID-19 front paragraph, figures “not … adjusted for any impacts of COVID-19”; “On 23 March 2020 the PRA announced that COVID-19 should be treated as a ‘major development’ as per Article 54(1) of the Solvency II Directive”; new section F.5 [SFCR p.2]*.

Business & Performance (SFCR pp. 2)

New: “On 11 April 2019 the Board approved a capital reduction of £51,400 thousand approved by special resolution from its parent's Board. It then also declared an interim dividend of £50,000 thousand.” [SFCR p.2]*

Changed: “Gross written premium fell by 4% in the year (2018: fell by 10%). New business sales were down largely due to no longer participating in aggregator sites offset by a strong retention of back book policies.” [SFCR p.2]* Gross claims “£49,278 thousand (2018: £61,632 thousand) decreased due to the impact of adverse weather in 2018 not replicated in 2019”; net claims incurred “£1,282 thousand (2018: negative £187 thousand)” [SFCR p.2]*.

System of Governance (SFCR pp. 3)

Note: Bullets unchanged (standard formula governance wording throughout the series) standard text [SFCR p.3].

Risk Profile (SFCR pp. 3)

Note: Risk-type list unchanged: “credit, market, underwriting, liquidity and operational risks” standard text [SFCR p.3].

Valuation (SFCR pp. 3)

Changed: Excess of assets over liabilities “£25,504 thousand (2018: £71,646 thousand)”, “£1,167 thousand (2018: £1,089 thousand) higher than the value under IFRS”, the decrease “driven by an interim dividend distribution of £50,000 thousand paid during the year” [SFCR p.3]*.

Capital Management (SFCR pp. 3-4)

Changed: EOF “£25,504 thousand (2018: £71,646 thousand)” all unrestricted Tier 1 standard text; SCR “£4,178 thousand (2018: £5,861 thousand)”; surplus “£21,326 thousand (2018: £65,786 thousand)”; “regulatory cover ratio of 610% (2018: 1,223%)” [SFCR p.4]*. [QRT verified: ratio 610%, matches]

New: The closing “Other information” paragraph, the pandemic “will continue to cause significant economic and social disruption … we do not propose to disclose the potential financial impact of the outbreak on the Company at this stage” [SFCR p.4]*.

Headline metrics

SCR coverage (stated)610%2018: 1223%

EOF / SCR / SurplusGBP 25.5m / 4.2m / 21.3m2018: 71.6m / 5.9m / 65.8m

Capital actionGBP 51.4m capital reduction + GBP 50.0m dividendapproved 11 April 2019

IFRS profit before taxGBP 4,667k2018: GBP 5,623k

New (3)

Capital restructuring: capital reduction of GBP 51,400k approved by special resolution, followed by a GBP 50,000k interim dividend.

COVID-19 front paragraph (WHO 11 March 2020; PRA 'major development' 23 March 2020; new appendix F.5) and closing 'Other information' outlook.

New-business commentary: withdrawal from aggregator sites reduces sales, offset by back-book retention.

Changed (3)

EOF down 64% [CALC] to GBP 25,504k; stated ratio 610% (2018: 1223%), attributed to the GBP 50,000k dividend.

GWP fell 4% in the year (2018: fell 10%).

Gross claims down to GBP 49,278k as 2018's adverse weather was not repeated; net claims incurred GBP 1,282k (2018: negative GBP 187k).

Outside the Summary

From section A.5 of the 2018 report, Any Other Information (p.7)

Section A.5 of the 2018 report (PDF p.7), outside that year's Summary, first gave notice of this capital reduction and dividend; the passage is quoted in the note under the 2018 card.

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2020

Delta from 2019

⭳ SFCR PDF

COVID-19 threads through every section while a second distribution (GBP 14m) cuts the ratio's base by a further 36% [CALC]: EOF GBP 16.2m (2019: GBP 25.5m), stated ratio 397%. The purpose sentence adopts a 'required by the SII regulatory framework' form.

2020 embeds the pandemic in the boilerplate and continues the capital drawdown. COVID-19 appears in every section, trading (“lower branch footfall, offset in part by strong digital growth”), claims (“decreased due to the favourable impacts of reduced economic activity”), governance (“adjustments made to the frequency and content of governance meetings”), and twice-repeated valuation/capital comfort language resting on “the 100% quota share reinsurance arrangement with it's parent company, Aviva Insurance Limited” [SFCR p.4]* (the “it's” as filed). This is also the first year the Summary quantifies the quota share at 100%. The second distribution in two years, “an interim dividend of £14,000 thousand” [SFCR p.3]*, cuts EOF to “£16,224 thousand” and the stated ratio to “397% (2019: 610%)” [SFCR p.4]*. The purpose sentence is reworded [SFCR p.3], and a comparator misprint states the 2019 SII-vs-IFRS difference in millions [Note 2].

Introduction (SFCR pp. 3)

Changed: Purpose sentence reworded: “to provide information required by the Solvency II (SII) regulatory framework and in particular the capital position of Gresham Insurance Company Limited (the Company) at 31 December 2020” [SFCR p.3]* standard text.

Business & Performance (SFCR pp. 3)

Changed: PBT “£3,845 thousand … (2019: £4,667 thousand)”, with underwriting profit GBP 274k, net investment income GBP 1,469k and other income GBP 2,102k [SFCR p.3]*.

New: COVID-19 trading effects: “New business sales were down due to a highly competitive home insurance market now coping with Covid-19 lockdown disruption seeing lower branch footfall, offset in part by strong digital growth and strong retention rates.” [SFCR p.3]*

Changed: “Gross written premium fell by 3% in the year (2019: fell by 4%).” [SFCR p.3]*

Changed: Gross claims “£43,853 thousand (2019: £50,334 thousand) decreased due to the favourable impacts of reduced economic activity from the impact of COVID 19 on current year claims” [SFCR p.3]*. The 2019 comparative is restated: the 2019 SFCR filed GBP 49,278k, a difference of GBP 1,056k, with no explanation [Note 3].

Changed: “The Board declared an interim dividend of £14,000 thousand.” [SFCR p.3]*

System of Governance (SFCR pp. 3-4)

New: “Governance arrangements were reviewed in response to COVID-19 with adjustments made to the frequency and content of governance meetings, management oversight and management information provided as required.” [SFCR p.4]* The no-material-changes line gains ‘other’ standard text standard text.

Risk Profile (SFCR pp. 4)

New: “The impact of COVID-19 is not considered to be significant given that the Company primarily underwrites personal household business.” [SFCR p.4]*

Valuation (SFCR pp. 4)

Changed: Excess of assets over liabilities “£16,224 thousand (2019: £25,504 thousand)”, “£1,155 thousand (2019: £1,167 million) higher than the value under IFRS” [SFCR p.4]*, the comparator misprinted in millions [Note 2]; decrease attributed to the GBP 14,000k dividend.

New: The COVID-19 comfort sentence citing “the 100% quota share reinsurance arrangement with it's parent company, Aviva Insurance Limited” [SFCR p.4]*, the quota share quantified at 100% for the first time.

Capital Management (SFCR pp. 4)

Changed: EOF “£16,224 thousand (2019: £25,504 thousand)” all unrestricted Tier 1 standard text; SCR “£4,085 thousand (2019: £4,178 thousand)”; surplus “£12,139 thousand”; “regulatory cover ratio of 397% (2019: 610%)”, the decrease “driven by an interim dividend distribution of £14,000 thousand” [SFCR p.4]*. [QRT verified: ratio 397%, matches]

Changed: Capital objectives reworded: “to support new business growth, and satisfy the requirements…” standard text [SFCR p.4].

Headline metrics

SCR coverage (stated)397%2019: 610%

EOF / SCR / SurplusGBP 16.2m / 4.1m / 12.1m2019: 25.5m / 4.2m / 21.3m

IFRS profit before taxGBP 3,845k2019: GBP 4,667k

DividendGBP 14.0m interim2019: GBP 50.0m

New (1)

COVID-19 sentences in every section: lockdown effects on sales and claims, governance-arrangements review, risk and valuation/capital impact statements citing the 100% quota share with AIL.

Changed (3)

Purpose sentence reworded to 'information required by the Solvency II (SII) regulatory framework' (2019: 'information about the capital position… based on the SII requirements').

Second successive distribution: GBP 14,000k interim dividend; EOF down 36% [CALC] to GBP 16,224k; stated ratio 397%.

Gross claims down to GBP 43,853k on reduced economic activity under COVID-19; the 2019 comparative is restated to GBP 50,334k from the GBP 49,278k filed in 2019.

Dropped (2)

The 2019 'Other information' COVID outlook paragraph (replaced by inline sentences).

The 'Net claims incurred are…' sentence, present in every Summary 2017-2019 (2019: net claims incurred GBP 1,282k).

Notes this year (2)

Note 2 · Valuation comparator misprint: the SII-vs-IFRS difference is stated as '(2019: GBP 1,167 million)' for what prior text states in thousands.

Note 3 · The 2020 SFCR restates the 2019 gross-claims comparative without explanation: '(2019: GBP 50,334 thousand)' against the GBP 49,278 thousand filed in the 2019 SFCR, a difference of GBP 1,056k.

Was this 2020 analysis useful or accurate?

2021

Delta from 2020

⭳ SFCR PDF

A third successive dividend (GBP 4.7m) takes the stated ratio to 366%; investment income swings negative on unrealised bond losses; Russia-Ukraine appears as a post-balance-sheet risk; several 2020 comparators are quietly restated.

In 2021, after dividends of GBP 50m (2019) and GBP 14m (2020), a further “interim dividend of £4,700 thousand” [SFCR p.3]* takes eligible own funds to “£12,950 thousand”, 18% [CALC] of their 2018 level, and the stated ratio to “366% (2020: 397%)” [SFCR p.4]*. The P&L turns on markets: a “net investment expense … of £735 thousand” driven by “unrealised loss … of £1,704 thousand” on gilts and collectives [SFCR p.3]*. The Summary also quietly rewrites its own history: the 2020 comparators for investment income, interest receivable, unrealised gains and other income all differ from the figures the 2020 SFCR filed, with no restatement note [Note 4]. A post-balance-sheet paragraph brings the Russia-Ukraine conflict into the risk profile [SFCR p.4]*.

Introduction (SFCR pp. 3)

Note: Purpose sentence unchanged standard text [SFCR p.3].

Business & Performance (SFCR pp. 3)

Changed: PBT “£1,577 thousand … (2020: £3,845 thousand)”, comprising an underwriting loss of GBP 37k, “net investment expense of £735 thousand (2020: income £1,354 thousand)” and other income GBP 2,349k [SFCR p.3]*. The 2020 comparators differ from the 2020 filing [Note 4].

Changed: GWP “fell by 5% in the year (2020: fell by 3%)” on COVID-19 disruption, lower invites and retention, partially offset by higher average premiums [SFCR p.3]*.

Changed: Gross claims incurred “£39,245 thousand (2020: £43,853 thousand) decreased due to the favourable impacts of reduced economic activity from the impact of COVID 19 on current year claims” [SFCR p.3]*.

Changed: Dividend steps down: “The Board declared an interim dividend of £4,700 thousand.” [SFCR p.3]*

New: PPO wording expanded: “annuities stemming from non-life insurance contracts (through Periodical Payment Orders 'PPO')” [SFCR p.3]* standard text.

System of Governance (SFCR pp. 3-4)

Note: The bullets (pp. 3-4) and the COVID-19 governance-review sentence carried over from 2020 standard text, except that the first item, “The roles and responsibilities of the Board are well defined”, is no longer bulleted, leaving five bullets (2020: six) [SFCR pp.3-4].

Risk Profile (SFCR pp. 4)

New: “On 24 February 2022, on-going tensions between Russia and Ukraine developed into full-scale armed conflict between the two countries. The Company is monitoring and responding to this dynamic situation.” [SFCR p.4]*

Note: COVID-19 sentence and risk-type list unchanged standard text [SFCR p.4].

Valuation (SFCR pp. 4)

Changed: Excess of assets over liabilities “£12,950 thousand (2020: £16,224 thousand)”, “£1,004 thousand (2020: £1,155 thousand) higher than the value under IFRS”, the decrease “driven by an interim dividend distribution of £4,700 thousand” [SFCR p.4]*.

Capital Management (SFCR pp. 4)

Changed: EOF “£12,950 thousand (2020: £16,224 thousand)” all unrestricted Tier 1 standard text; SCR “£3,536 thousand (2020: £4,085 thousand)”; surplus “£9,414 thousand”; “regulatory cover ratio of 366% (2020: 397%)” [SFCR p.4]*. [QRT verified: ratio 366%, matches]

Headline metrics

SCR coverage (stated)366%2020: 397%

EOF / SCR / SurplusGBP 13.0m / 3.5m / 9.4m2020: 16.2m / 4.1m / 12.1m

IFRS profit before taxGBP 1,577k2020: GBP 3,845k

DividendGBP 4.7m interim2020: GBP 14.0m

New (3)

Russia-Ukraine paragraph: full-scale conflict from 24 February 2022; impact reflected in Section C.7.3.

PPO definition expanded: 'through Periodical Payment Orders (PPO)'.

Other income described as legal-expenses add-ons to existing policies.

Changed (4)

Third successive distribution: GBP 4,700k interim dividend; EOF down to GBP 12,950k, stated ratio 366%.

Net investment result swings to an expense of GBP 735k on unrealised losses of GBP 1,704k.

Gross claims incurred GBP 39,245k (2020: GBP 43,853k), attributed to reduced economic activity under COVID-19.

2020 investment comparators restated (income GBP 1,354k vs GBP 1,469k as filed; interest GBP 1,262k vs GBP 817k).

Notes this year (1)

Note 4 · The 2021 SFCR restates 2020 comparators without explanation: net investment income GBP 1,354k (2020 SFCR: GBP 1,469k), interest receivable GBP 1,262k (GBP 817k), unrealised gain GBP 92k (GBP 652k), other income GBP 2,217k (GBP 2,102k).

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2022

Delta from 2021

⭳ SFCR PDF

COVID-19 leaves the Summary and no dividend is declared for the first time in four years; the SCR rises 36% [CALC] to GBP 4,816k, a movement the Summary does not explain, taking the stated ratio to its window low of 336%.

2022 is the trough of Gresham's ratio series and the year its Summary sheds current events. Every COVID-19 sentence the 2021 Summary carried (2021 report, pages 3 to 6) is removed, and the Russia-Ukraine paragraph added in 2021 does not recur. The capital movement runs against the own-funds direction: EOF rose to “£16,178 thousand (2021: £12,950 thousand)” yet the stated ratio fell to “336% (2021: 366%)” because the SCR jumped to “£4,816 thousand (2021: £3,536 thousand)” [SFCR p.4]*, the Summary offers no explanation for the SCR increase, while the business narrative notes gross claims incurred up 41% [CALC] “due to … adverse claims performance” and GWP down 14% [SFCR p.3]*. The distribution pattern also turns: “The Board has not declared an interim dividend (2021: interim dividend of £4,700 thousand)..” [SFCR p.3]*, the doubled full stop as filed, beginning a three-year nil-dividend stretch that ends only with 2025's foreseeable dividend.

Introduction (SFCR pp. 3)

Note: Purpose sentence unchanged standard text [SFCR p.3].

Business & Performance (SFCR pp. 3)

Changed: PBT “£3,128 thousand … (2021: £1,577 thousand)” comprising underwriting profit “£945 thousand (2021: loss £37 thousand)”, net investment expense GBP 60k and other income GBP 2,243k [SFCR p.3]*.

Changed: “Gross written premium fell by 14% in the year (2021: fell by 5%) as a result of the highly competitive home insurance market”; gross claims “£55,255 thousand (2021: £39,245 thousand) increased due to due to adverse claims performance” [SFCR p.3]* (duplication as filed).

Changed: “The Board has not declared an interim dividend (2021: interim dividend of £4,700 thousand)..” [SFCR p.3]*

System of Governance (SFCR pp. 3-4)

Dropped: The COVID-19 governance-review sentence (2020-2021) is removed; bullets otherwise unchanged standard text [SFCR p.3-4].

Risk Profile (SFCR pp. 4)

Dropped: The COVID-19 impact sentence and the Russia-Ukraine paragraph are removed; the risk-type list stands standard text [SFCR p.4].

Valuation (SFCR pp. 4)

Changed: Excess of assets over liabilities “£16,178 thousand (2021: £12,950 thousand)”, “£1,104 thousand (2021: £1,004 thousand) higher than the value under IFRS” [SFCR p.4]*; the COVID-19 financial-position sentence is dropped.

Capital Management (SFCR pp. 4)

Changed: EOF “£16,178 thousand (2021: £12,950 thousand)” all unrestricted Tier 1 standard text; SCR “£4,816 thousand (2021: £3,536 thousand)”; surplus “£11,362 thousand (2021: £9,414 thousand)”; “regulatory cover ratio of 336% (2021: 366%)” [SFCR p.4]*. No explanation for the SCR increase is stated. [QRT verified: ratio 336%, matches]

Headline metrics

SCR coverage (stated)336%2021: 366%

EOF / SCR / SurplusGBP 16.2m / 4.8m / 11.4m2021: 13.0m / 3.5m / 9.4m

IFRS profit before taxGBP 3,128k2021: GBP 1,577k

DividendNone declared2021: GBP 4.7m

Changed (3)

SCR up 36% [CALC] to GBP 4,816k, with no explanation stated; stated ratio 336% (2021: 366%), the lowest of the window despite EOF rising to GBP 16.2m.

GWP down 14% in a highly competitive home market; gross claims up to GBP 55,255k on adverse claims performance.

Dividend line changes to 'The Board has not declared an interim dividend' (first nil year since 2018).

Dropped (2)

All COVID-19 sentences (governance review, risk-profile and valuation/capital impact statements; present 2020-2021).

The Russia-Ukraine paragraph (2021 only).

Was this 2022 analysis useful or accurate?

2023

Delta from 2022

⭳ SFCR PDF

Transformation: Gresham terminates the Barclays arrangement, buys the renewal rights to the in-force Home book (funded by an AIL capital injection), rebrands policies to Aviva and becomes an administer-and-manage entity with an Aviva-only Board under a Framework Service Agreement. EOF up 71% [CALC] to GBP 27.7m; stated ratio 568%.

2023 rewrites what Gresham is. The Summary explains that the Company “entered into a contractual agreement with its distribution partner Barclays Bank UK plc that resulted in the Company terminating the current business arrangement on 30 August 2023 and acquiring renewal rights to in-force UK household insurance policies”, funded “via a capital injection from its immediate parent company, Aviva Insurance Limited (AIL)” [SFCR p.3]*, with “Brand migration of these policies from Barclays to Aviva … on the acquisition date, with no further new business acquisition into Gresham” [SFCR p.3]*. The governance section makes the control change explicit: “the Company's Board with effect from 1st January 2023 is solely composed of senior management from Aviva”, operating under a new “internal Framework Service Agreement (FSA)” with AIL [SFCR p.4]*. Capital rebuilds accordingly, EOF up 71% [CALC] to “£27,670 thousand” and a stated ratio of “568% (2022: 336%)” [SFCR p.4]*, both attributed to operational capital generation and the arrangement. The comparator hygiene slips again: the 2022 PBT, underwriting and investment comparators differ materially from the 2022 filing, unexplained [Note 5], a pattern that recurs in the other direction in 2024 [Note 6].

Introduction (SFCR pp. 3)

Note: Purpose sentence unchanged standard text [SFCR p.3].

Business & Performance (SFCR pp. 3)

New: The renewal-rights acquisition, termination of the Barclays arrangement on 30 August 2023, “an initial upfront payment to the distribution partner and a smaller deferred consideration payable on the second anniversary based on policy retention performance”, funded by the AIL capital injection, with a “best estimate assessment of the deferred consideration which will be monitored quarterly” [SFCR p.3]*.

New: “The principal activity of the Company going forward will therefore be to administer and manage the in-force UK household insurance policies.” [SFCR p.3]*

Changed: PBT “£6,515 thousand … (2022: £5,797 thousand)” with underwriting profit “£1,004 thousand (2022: profit £3,528 thousand)” [SFCR p.3]*, comparators that do not match the 2022 filing (PBT GBP 3,128k; underwriting GBP 945k) [Note 5].

System of Governance (SFCR pp. 3-4)

New: “the Company's Board with effect from 1st January 2023 is solely composed of senior management from Aviva … the Company and its parent (AIL) have implemented an internal Framework Service Agreement (FSA) to define the management and the day to day operation of the Company” [SFCR p.4]*.

Changed: The delegation bullet becomes “delegated responsibilities to management from AIL” [SFCR p.4]* (2022: “management within the Aviva Group”) standard text.

Risk Profile (SFCR pp. 4)

Note: Risk-type list unchanged standard text [SFCR p.4].

Valuation (SFCR pp. 4)

Changed: Excess of assets over liabilities “£27,670 thousand (2022: £16,178 thousand)… This increase is driven by capital generated by the Company's operations during the year and the impact of the business arrangement described in the business and performance summary above.” [SFCR p.4]* The SII-vs-IFRS difference sentence is dropped this year.

Capital Management (SFCR pp. 4-5)

Changed: EOF “£27,670 thousand (2022: £16,178 thousand)” all unrestricted Tier 1 standard text; SCR “£4,876 thousand (2022: £4,816 thousand)”; surplus “£22,794 thousand (2022: £11,362 thousand)”; “regulatory cover ratio of 568% (2022: 336%)” [SFCR p.4]*. [QRT verified: ratio 568%, matches]

Headline metrics

SCR coverage (stated)568%2022: 336%

EOF / SCR / SurplusGBP 27.7m / 4.9m / 22.8m2022: 16.2m / 4.8m / 11.4m

IFRS profit before taxGBP 6,515k2022 as restated in 2023 SFCR: GBP 5,797k, Note 5

DividendNone declared2022: nil

New (4)

Barclays arrangement terminated 30 August 2023; renewal rights to the in-force UK household book acquired for an upfront payment plus deferred consideration, funded by an AIL capital injection.

Brand migration to Aviva (a trade name of the Company) on the acquisition date; no further new business into Gresham.

Principal activity redefined: administer and manage the in-force UK household insurance policies.

Governance rebuilt: Board solely composed of Aviva senior management from 1 January 2023; internal Framework Service Agreement (FSA) with AIL.

Changed (3)

EOF up 71% [CALC] to GBP 27,670k; stated ratio 568% (2022: 336%), driven by operational capital generation and the business arrangement.

2022 comparators restated without explanation: PBT GBP 5,797k, underwriting GBP 3,528k, investment income GBP 36k.

Governance delegation bullet: 'management from AIL' (previously 'management within the Aviva Group').

Dropped (1)

The Barclays business-arrangement description as current-state ('transacts general insurance business… through a business arrangement with Barclays Bank plc').

Notes this year (1)

Note 5 · The 2023 SFCR restates 2022 comparators without explanation: profit before tax GBP 5,797k (2022 SFCR: GBP 3,128k), underwriting profit GBP 3,528k (GBP 945k), net investment income GBP 36k (2022 SFCR: expense GBP 60k).

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2024

Delta from 2023

⭳ SFCR PDF

A quiet operating year with a loud comparator: the 2023 own-funds base is restated from GBP 27.7m to GBP 16.3m (ratio 568% to 333%) without explanation; 2024 EOF GBP 29.3m and stated ratio 614%. Capital objectives now speak of administering existing policies.

The operating story of 2024 is simple, a closed book running off profitably, with PBT up to “£10,375 thousand”, including interest receivable of GBP 6,165k, and “Retention of existing business exceeded expectations” [SFCR p.3]*, but the capital story contains the sharpest unexplained movement in this tracker. The valuation section states the 2023 excess of assets over liabilities as “(2023: 16,257 thousand restated))” and the capital section carries matching comparators (EOF GBP 16,257k, surplus GBP 11,381k, ratio “333%”) [SFCR p.4]*, where the 2023 SFCR itself, and the QRT as filed, state GBP 27,670k, GBP 22,794k and 568%. The difference, c. GBP 11.4m, is not explained anywhere in the Summary [Note 6]. On the restated base the 2024 position of “£29,267 thousand” EOF and a “614%” ratio [SFCR p.4]* reads as a near-doubling of coverage; on the as-filed base it is a rise of 46 points [CALC]. One wording change marks the strategic shift: capital is now maintained “to support administration of existing policies” rather than 'new business growth' [SFCR p.4]*, the first change to the capital-objectives boilerplate since 2020.

Introduction (SFCR pp. 3)

Note: Purpose sentence unchanged, still “Solvency II (SII) regulatory framework”, with no Solvency UK adoption standard text [SFCR p.3].

Business & Performance (SFCR pp. 3)

Note: The January 2023 Barclays renewal-rights paragraph is repeated verbatim as standing background standard text [SFCR p.3].

Changed: PBT “£10,375 thousand … (2023: £6,515 thousand)”, comprising underwriting profit GBP 1,761k, net investment income “£6,165 thousand (2023: income £4,140 thousand)”, being “interest receivable of £6,165 thousand (2023: £3,491 thousand)”, and other income GBP 2,449k [SFCR p.3]*.

Changed: “Gross written premium fell by 7% in the year (2023: fell by 4%) reflecting the fact that the book is now closed to new business.” [SFCR p.3]*

System of Governance (SFCR pp. 3-4)

Note: The post-Barclays governance paragraph (Aviva-only Board; FSA with AIL) is carried over from 2023 unchanged standard text [SFCR p.4].

Risk Profile (SFCR pp. 4)

Note: Unchanged: “credit, market, underwriting, liquidity and operational risks” standard text [SFCR p.4].

Valuation (SFCR pp. 4)

Changed: “At 31 December 2024, the Company's excess of assets over liabilities was £29,267 thousand (2023: 16,257 thousand restated))” [SFCR p.4]*, restating the 2023 filing of GBP 27,670k with no stated reason [Note 6].

Capital Management (SFCR pp. 4)

Changed: EOF “£29,267 thousand (2023: £16,257 thousand)” all unrestricted Tier 1 standard text; SCR “£4,764 thousand (2023: £4,876 thousand)”; surplus “£24,503 thousand (2023: £11,381 thousand)”; “regulatory cover ratio of 614% (2023: 333%)” [SFCR p.4]*. The 2023 SFCR stated 568% [Note 6]. [QRT: 2024 EOF, SCR and ratio match as filed]

Changed: Capital objective reworded: “Maintain sufficient, but not excessive, financial strength to support administration of existing policies” [SFCR p.4]* (2023: “to support new business growth”) standard text.

Headline metrics

SCR coverage (stated)614%2023 as restated in 2024 SFCR: 333%

EOF / SCR / SurplusGBP 29.3m / 4.8m / 24.5m2023 restated: 16.3m / 4.9m / 11.4m, Note 6

IFRS profit before taxGBP 10,375k2023: GBP 6,515k

DividendNone declared2023: nil

Changed (3)

2023 capital comparators restated: EOF 'GBP 16,257 thousand restated' / surplus GBP 11,381k / ratio 333%, against GBP 27,670k / GBP 22,794k / 568% as filed in 2023 and in the QRT.

Capital objective reworded: financial strength 'to support administration of existing policies' (previously 'to support new business growth').

PBT up 59% [CALC] to GBP 10,375k, with interest receivable of GBP 6,165k (2023: GBP 3,491k); GWP down 7% with the book closed to new business.

Dropped (1)

The Summary records nothing dropped this year; unrealised losses now appear only in the 2023 comparator clause of the investment paragraph.

Notes this year (1)

Note 6 · The 2024 SFCR restates the 2023 capital comparators from EOF GBP 27,670k / surplus GBP 22,794k / ratio 568% (as filed in 2023 and in the QRT) to 'GBP 16,257 thousand restated' / GBP 11,381k / 333%, with no stated reason.

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2025

Delta from 2024

⭳ SFCR PDF

Run-off is formalised: legacy Barclays customers renew into AIL from 2026; a GBP 76.5m capital reduction leaves GBP 1 of share capital and a GBP 14.5m foreseeable dividend is charged to own funds. EOF up 40% [CALC] to GBP 41.0m; stated ratio 900%.

2025 sets Gresham's endgame. The Business and Performance section states that “In 2026, legacy Barclays customers will have their contracts renewed into Aviva Insurance Limited (‘AIL’), at which point the Company's primary activities will become managing the run-off of in-force contracts and incurred claims” [SFCR p.3]*. The balance-sheet mechanics point the same way: a new ‘Significant events’ section records that “the Board approved a share capital reduction of £76,500 thousand, leaving a residual share capital value of £1”, and a “£14,500 thousand interim dividend … recognised as a foreseeable dividend charge in Own Funds” [SFCR p.3]*, settled in February 2026. Even so, eligible own funds rose 40% [CALC] to “£40,967 thousand”, against an SCR of “£4,553 thousand”, for a stated ratio of “900% (2024: 614%)” [SFCR p.4]*, and, notably, a stated SCR the QRT extract does not carry this year [Note 7]. The excess of assets over liabilities, “£55,468 thousand” [SFCR p.4]*, exceeds EOF by GBP 14,501k [CALC], GBP 1k more than the stated “£14,500 thousand” dividend. The purpose paragraph still frames the report under “the Solvency II (SII) regulatory framework” with no Solvency UK wording [SFCR p.3].

Introduction (SFCR pp. 3)

Note: The purpose sentence is unchanged and remains SII-framed, “information required by the Solvency II (SII) regulatory framework” [SFCR p.3]*, with no adoption of Solvency UK labelling anywhere in the Summary standard text.

Business & Performance (SFCR pp. 3)

New: “In 2026, legacy Barclays customers will have their contracts renewed into Aviva Insurance Limited (‘AIL’), at which point the Company's primary activities will become managing the run-off of in-force contracts and incurred claims.” [SFCR p.3]*

Changed: PBT “£8,428 thousand … (2024: £10,375 thousand)”, comprising underwriting profit “£6,261 thousand (2024: profit £1,761 thousand)”, net investment income GBP 4,673k and other income GBP 2,506k [SFCR p.3]*; GWP “fell by 1%… reflecting the fact that the book is now closed to new business. Retention of existing business exceeded expectations.” [SFCR p.3]*

New: “The Board declared an interim dividend of £14,500 thousand during the year (2024: nil). This was settled in February 2026.” [SFCR p.3]*, the first distribution disclosed since 2021.

New: The ‘Significant events in the reporting period’ section, capital reduction “£76,500 thousand, leaving a residual share capital value of £1”, feeding the Reconciliation Reserve; the dividend “unpaid as at 31 December 2025 … recognised as a foreseeable dividend charge in Own Funds” [SFCR p.3]*.

System of Governance (SFCR pp. 3)

Note: The five governance bullets and the post-Barclays paragraph (Aviva-only Board from 1 January 2023; FSA with AIL) are carried over unchanged from 2024 standard text [SFCR p.3].

Risk Profile (SFCR pp. 4)

Note: Risk types remain “credit, market, underwriting, liquidity and operational risks” standard text; liquidity measured through absolute level targets and bespoke coverage ratios standard text [SFCR p.4].

Valuation (SFCR pp. 4)

Changed: Excess of assets over liabilities “£55,468 thousand (2024: 29,267 thousand restated))” [SFCR p.4]*, the ‘restated’ label and doubled bracket sit against a figure identical to the 2024 filing [Note 7]. The excess exceeds EOF by GBP 14,501k [CALC], GBP 1k more than the stated foreseeable dividend of GBP 14,500k.

Capital Management (SFCR pp. 4)

Changed: EOF “£40,967 thousand (2024: £29,267 thousand)” all unrestricted Tier 1 standard text; SCR “£4,553 thousand (2024: £4,764 thousand)”; surplus “£36,414 thousand”; “regulatory cover ratio of 900% (2024: 614%)” [SFCR p.4]*. [QRT verified: EOF and ratio match; the QRT extract has no 2025 SCR value, Note 7]

Headline metrics

SCR coverage (stated)900%2024: 614%

EOF / SCR / SurplusGBP 41.0m / 4.6m / 36.4m2024: 29.3m / 4.8m / 24.5m

IFRS profit before taxGBP 8,428k2024: GBP 10,375k

Foreseeable dividendGBP 14.5m (declared 01-12-2025)settled February 2026

New (2)

'Significant events in the reporting period' section: share capital reduction of GBP 76,500k approved 1 December 2025, leaving residual share capital of GBP 1; GBP 14,500k interim dividend recognised as a foreseeable dividend charge in Own Funds.

2026 run-off plan: legacy Barclays customers renew into AIL, after which the Company's primary activities become managing the run-off of in-force contracts and incurred claims.

Changed (3)

EOF up 40% [CALC] to GBP 40,967k; stated ratio 900% (2024: 614%); SCR GBP 4,553k.

Underwriting profit GBP 6,261k (2024: GBP 1,761k) within PBT of GBP 8,428k.

First dividend declared since 2021 (GBP 14.5m, unpaid at year-end).

Dropped (1)

The unrealised gains/losses component of investment income (2025 net investment income comprises interest receivable only).

Notes this year (1)

Note 7 · The QRT extract carries no 2025 SCR value for Gresham; the SFCR states SCR GBP 4,553k and ratio 900%, which the charts use. The valuation comparator '(2024: 29,267 thousand restated))' carries a 'restated' label (and doubled bracket) although the figure equals the 2024 filing.

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Generated by AI. This analysis was produced with AI from the companies’ SFCRs; check any figure against the source report before relying on it.