The Marine Insurance Company Limited: SFCR Compendium 2016

2016

Baseline year

Baseline: the earliest RSA Group combined SFCR in the window, covering MIC as one of three UK solo entities alongside RSAI and RSA Re (the document does not describe itself as a first; later Introductions state that SII became effective on 1 January 2016). Turnaround-era narrative; Group ratio 158%, very near the top of the 130-160% target range; record underwriting profit GBP 380m. MIC solo ratio 226% [QRT].

The 2016 baseline establishes the structural fact that shapes this whole tracker: MIC has no standalone SFCR. It is one of “three of the Group's UK regulated insurance and reinsurance subsidiaries” covered by the Group document, and the report tells the reader plainly that “the Group does not manage each entity as an individual business and does not set individual business strategies … the focus of the Group SFCR is the activities of the RSA Group as a whole” [SFCR p.3]*. The Summary itself is the turnaround story: “In total 20 divestments have been made to achieve this focus raising £1.2bn”, “record underwriting profits of £380m compared to a like-for-like 2013 profit of £1m”, a record COR of “94.2%” [SFCR p.4]*, and a coverage ratio of “158%”: “very near the top of the Group's target range of 130% to 160%” [SFCR p.5]*. The post-balance-sheet Enstar disposal of “£834m of UK legacy insurance liabilities” is disclosed as adding 18 points of coverage [SFCR p.5]*, alongside the Ogden discount-rate change and Brexit-referendum monitoring [SFCR p.6]. MIC's solo position, EOF GBP 44.6m against an SCR of GBP 19.7m, a 226% ratio [QRT], is the lowest solo ratio of the window, and is not stated in the Summary.

Introduction (SFCR pp. 3)

Note: The covered-entities block standard text: “The three UK subsidiaries are: Royal & Sun Alliance Insurance plc (RSAI); Royal & Sun Alliance Reinsurance Limited (RSA Re); and The Marine Insurance Company Limited (MIC).” [SFCR p.3]*

Note: The reader-guidance sentence standard text: “the Group does not manage each entity as an individual business and does not set individual business strategies … the focus of the Group SFCR is the activities of the RSA Group as a whole.” [SFCR p.3]*

Note: Transitional measures: only the debt-arrangements transitional under Article 308b(9) is applied standard text [SFCR p.3].

Business & Performance (SFCR pp. 4-5)

Note: The turnaround recap: “The Group started a strategic restructuring and turnaround programme three years ago.” [SFCR p.4]* Among the results it lists: “In total 20 divestments have been made to achieve this focus raising £1.2bn.” [SFCR p.4]*

Note: “Underwriting profits rose 73% to a record £380m. This represents a combined ratio of 94.2%, also a record for the Group. Reserve margins were strengthened to 5.5% (2015: 5%)” [SFCR p.4]*; operating profit “£655m, up 25% (2015: £523m)” [SFCR p.4]*.

System of Governance (SFCR pp. 7)

Note: “The Group maintains a stable system of governance and has not experienced any material changes in how the business has been operated over the course of 2016.” [SFCR p.7]* standard text.

Risk Profile (SFCR pp. 6)

Note: Risk narrative is event-driven: SCR reduction from pension de-risking, the Ogden discount-rate change (“not material” to the year-end balance sheet), and Brexit-referendum monitoring with structural plans for RSAI's EU branches [SFCR p.6]*.

Capital Management (SFCR pp. 5, 7)

Note: Capital table, SCR GBP 1.8bn, EOF GBP 2.9bn, surplus GBP 1.1bn, coverage “158%” [SFCR p.5]*, with the drivers of the 15-point rise itemised standard text.

Note: The Enstar disposal: “£834m of UK legacy insurance liabilities … to Enstar Group Limited”, improving coverage “by 18 percentage points to 176%” pro forma [SFCR p.5]*.

Note: Debt actions, GBP 200m Tier 2 retired July 2016; March 2017 RT1 issuance (c. GBP 300m SEK/DKK) and GBP 592m retirement, netting to a pro-forma ratio of 167% [SFCR p.7]*.

Note: MIC solo [QRT]: EOF GBP 44.6m, SCR GBP 19.7m, surplus GBP 24.9m, ratio 226%, the lowest of the window. Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]226%first year, no comparative

MIC solo EOF / SCR / Surplus [QRT]GBP 44.6m / 19.7m / 24.9m

Group SCR coverage (stated)158%target range 130-160%

Group underwriting profit (stated)GBP 380mrecord; COR 94%

New (5)

Combined Group SFCR structure: Group plus three UK solo entities (RSAI, RSA Re, MIC) with entity detail in appendices.

Explicit reader guidance: the Group does not manage each covered entity as an individual business; the SFCR's focus is the Group as a whole.

Turnaround narrative: 20 divestments raising GBP 1.2bn; record underwriting profit GBP 380m; COR 94%.

Enstar UK legacy disposal (February 2017) disclosed post-balance-sheet: +18 points of coverage to 176%.

Debt actions: GBP 200m Tier 2 retired in 2016; RT1 issuance and further retirements in March 2017.

Was this 2016 analysis useful or accurate?

2017

Delta from 2016

⭳ SFCR PDF

The turnaround story matures: record underwriting profit of GBP 394m (COR 94%), a new ratio-movement waterfall table, a risk-driver pie chart, and the Enstar legacy disposal (contracts signed February 2017, legal transfer to follow) and completed debt refinancing. Group ratio 163%; MIC solo more than doubles to 541% [QRT].

2017 converts 2016's one-off events into run-rate disclosure. The headline apparatus that defines the middle years arrives: a waterfall table decomposing the ratio's move from 158% to 163% into recurring drivers (“Underlying capital generation 25” points, dividends −11) and non-recurring items (“Disposal of UK Legacy liabilities 18”, “Ogden rate change (3)”, “Debt restructuring actions (10)”) [SFCR p.5]*, and a pie chart of SCR risk drivers [SFCR p.6]. Performance sets another record, underwriting profit “£394m, up 4% versus the Group's record year in 2016”, COR “94.0%”, with the UK the sore spot at “102.0%”, a figure the source footnotes “Proforma for share of aggregate reinsurance recoveries and excludes the impact of the Ogden rate change”, after “£72m of losses from US/Caribbean hurricanes and Mexican earthquakes” [SFCR p.4]*. The Enstar legacy disposal and the RT1/T2 refinancing, disclosed as post-balance-sheet events in 2016, move into the year's capital activity: the Enstar contracts were signed in February 2017, with the reinsurance agreement “to be followed by completion of a subsequent legal transfer of the business”, while the debt retirements are completed, including a further “£44m” [SFCR p.6]*. MIC solo is the quiet outlier: its SCR halves from GBP 19.7m to GBP 8.9m, more than doubling the solo ratio to 541% [QRT], no entity-level explanation is stated in the Summary.

Introduction (SFCR pp. 3)

Changed: Introduction near-verbatim from 2016; the subsidiary-information sentence drops “Therefore separate sub-headings for the Group and the three subsidiaries are used throughout this report”, leaving the appendix reference [SFCR p.3] standard text standard text.

Business & Performance (SFCR pp. 4)

Changed: The opening becomes a standing strategy statement, “The Group is a focused international insurer with complementary leadership positions … well balanced between personal and business customers” [SFCR p.4]*, replacing the 2016 turnaround recap.

Changed: “Underwriting profits posted a new record at £394m, up 4% versus the Group's record year in 2016. The combined ratio of 94.0% was also a new record for RSA.” [SFCR p.4]*

Changed: The UK is singled out, COR “102.0%”, footnoted “Proforma for share of aggregate reinsurance recoveries and excludes the impact of the Ogden rate change”, on “£72m of losses from US/Caribbean hurricanes and Mexican earthquakes (net of GVC recovery), elevated Household ‘escape of water’ inflation and significant adverse large loss volatility” [SFCR p.4]*.

System of Governance (SFCR pp. 7)

Note: “The Group maintains a stable system of governance and has not experienced any material changes … over the course of 2017.” [SFCR p.7]* (unchanged from 2016, standard text).

Risk Profile (SFCR pp. 6)

New: The SCR risk-driver pie chart (underwriting 12%, catastrophe 14%, reserve 19%, market/credit/currency 22%, pension 23%, operational 10%) sourced to the Annual Report [SFCR p.6].

Changed: “In 2017 there were no material changes to the Group's risk profile as a result of external events or business changes.” [SFCR p.6]* The 2016 Ogden and Brexit-referendum paragraphs are dropped.

Capital Management (SFCR pp. 5-7)

New: The waterfall table decomposing the coverage-ratio movement, split “Recurring” / “Non-recurring” [SFCR p.5]*.

Changed: Capital table gains a comparative row, 31 December 2017: SCR GBP 1.80bn, EOF GBP 2.93bn, surplus GBP 1.13bn, coverage “163%” (2016: 158%) [SFCR p.5]*.

Changed: The Enstar disposal and debt refinancing move into the year's capital activity: Enstar as contracts signed in February 2017, “to be followed by completion of a subsequent legal transfer of the business”, and the debt retirements as completed, extended by “a further £44m of subordinated debt” retirement; net impact “to reduce the Group SCR coverage by 10bps” [SFCR p.6]*.

New: The MCR corridor note, from 1 January 2018 the Danish entities' MCRs are “no longer subject to a corridor based on the Standard Formula SCR”, adding “c16 percentage points” to MSCR coverage [SFCR p.6]*.

Note: MIC solo [QRT]: EOF GBP 48.1m, SCR GBP 8.9m (2016: GBP 19.7m), surplus GBP 39.2m, ratio 541% (2016: 226%). Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]541%2016: 226%

MIC solo EOF / SCR / Surplus [QRT]GBP 48.1m / 8.9m / 39.2m2016: 44.6m / 19.7m / 24.9m

Group SCR coverage (stated)163%2016: 158%

Group underwriting profit (stated)GBP 394m2016: GBP 380m; COR 94%

New (3)

Ratio-movement waterfall table (158% to 163%) splitting recurring from non-recurring drivers.

Risk-driver pie chart of SCR contributions (underwriting, catastrophe, reserve, market/credit/currency, pension, operational).

MCR corridor note: Danish entities' MCRs leave the Standard-Formula corridor from 1 January 2018, adding c. 16 points to MSCR coverage.

Changed (4)

Group ratio 163% (2016: 158%); capital table gains a prior-year row.

Underwriting profit a new record GBP 394m (2016: GBP 380m); COR 94%; UK COR 102% (proforma for aggregate reinsurance recoveries, excluding the Ogden rate change) on hurricanes, escape-of-water inflation and large losses.

Enstar disposal (contracts signed February 2017, legal transfer to follow) and the completed debt refinancing move from post-balance-sheet events into in-year capital activity, extended by a further GBP 44m retirement.

Summary opening reframed from turnaround recap to focused-insurer strategy statement.

Dropped (2)

The three-year turnaround/restructuring narrative and divestment tally of 2016.

The Ogden discount-rate and Brexit-referendum paragraphs of 2016.

Outside the Summary

From the 2016 report's Summary (2016 SFCR p.5), outside the 2017 Summary

The 2016 Summary says of the Enstar transaction: “This transaction was completed after 31 December 2016” (2016 SFCR p.5). The 2017 Summary does not describe it as completed: it gives the contracts as signed in February 2017, with the reinsurance agreement “to be followed by completion of a subsequent legal transfer of the business” [SFCR p.6]*.

Was this 2017 analysis useful or accurate?

2018

Delta from 2017

⭳ SFCR PDF

The Summary is restructured into SFCR-section headings, gains a six-category risk list and a valuation subsection, and switches its capital table from GBP bn to GBP m. First underwriting decline since 2013; Group ratio 170%; Brexit contingency planning enters. MIC solo 564% [QRT].

2018 is a structural rebuild of the Summary rather than a capital story: the free-flowing 2016-17 format is reorganised under the SFCR's own section headings, adding for the first time a six-category risk list (“Insurance … Market … Credit … Liquidity … Operational … Pension risk”) referenced to “QRT S.25.03” [SFCR p.7]*, and a valuation subsection stating the Group's excess of assets over liabilities (“£3,033m” SII vs “£4,251m” IFRS) [SFCR p.7]*. The capital table switches from billions to millions, sharpening the visible precision as coverage rises to “170%” on 22 points of underlying capital generation [SFCR p.8]*. The performance narrative turns: “the Group posted the first decline in underwriting profits since 2013”, “£250m (2017: £394m)”, COR “96.2%”, on weather and London Market large losses [SFCR p.6]*. Brexit contingency planning appears, including the Scandinavian internal-model application held against a hard-Brexit fallback [SFCR p.8]. The new purpose sentence carries a name transposition: “for RSA Group Insurance plc” [SFCR p.4]* [Note 1]. MIC solo: EOF GBP 51.2m, ratio 564% [QRT], unremarked.

Introduction (SFCR pp. 4-5)

New: A purpose sentence appears: “The purpose of the Solvency and Financial Condition Report (‘SFCR’) is to provide information required by the SII regulatory framework for RSA Group Insurance plc.” [SFCR p.4]* The company name is transposed [Note 1] standard text.

Changed: The Introduction gains sub-headings (RSA Insurance Group plc / Subsidiaries / Annual Report and Accounts / Transitional measures); RSA Luxembourg SA joins the EU list, “exempt from the requirement to produce or publish a SFCR for the year ended 31 December 2018” [SFCR p.5]* standard text standard text.

Business & Performance (SFCR pp. 6)

Changed: “in 2018, the Group posted the first decline in underwriting profits since 2013, driven primarily by higher weather costs and large loss challenges in the Commercial Lines businesses, most notably through the London Market results.” [SFCR p.6]* Underwriting profit “£250m (2017: £394m)”, COR “96.2% (2017: 94.0%)” [SFCR p.6]*.

Changed: Regional overview retained but soured, UK COR “104.0%”, Canada “fell back”, Ireland improved to “90.2%”, Middle East record “83.4%” [SFCR p.6]*.

System of Governance (SFCR pp. 6)

New: Governance becomes its own Summary subsection: “The Group maintains a robust system of governance and has not experienced any material changes … over the course of 2018.” [SFCR p.6]* standard text.

Risk Profile (SFCR pp. 7)

New: The six-category risk list appears with its cross-reference to a QRT template [SFCR p.7]* standard text; the 2017 risk-driver pie chart is dropped.

Note: The 2017 “no material changes” framing is retained, adapted to the year: “During 2018 there were no material changes to the Group’s risk profile as a result of external events or business changes.” [SFCR p.7]*

Valuation (SFCR pp. 7)

New: “At 31 December 2018, the Group's excess of assets of liabilities on an SII basis was £3,033m, and on an IFRS basis this was £4,251m”, differences attributed to technical provisions, goodwill and intangibles [SFCR p.7]*.

Capital Management (SFCR pp. 8)

Changed: Capital table now in GBP m, SCR GBP 1,743m, EOF GBP 2,956m, surplus GBP 1,213m, coverage “170%” (2017: 163%) [SFCR p.8]*; waterfall retained.

New: The Brexit paragraph: “A model application been submitted in respect of our Scandinavian entities to mitigate the risk of moving to Standard Formula in the event of a hard Brexit. This has no impact on the modelled Group SCR.” [SFCR p.8]*

Changed: Final proposed dividend “13.7p per ordinary share (£141m)”, total “21.0p (up 7% on 2017)” [SFCR p.8]*.

Note: MIC solo [QRT]: EOF GBP 51.2m, SCR GBP 9.1m, surplus GBP 42.1m, ratio 564%. Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]564%2017: 541%

MIC solo EOF / SCR / Surplus [QRT]GBP 51.2m / 9.1m / 42.1m2017: 48.1m / 8.9m / 39.2m

Group SCR coverage (stated)170%2017: 163%

Group underwriting profit (stated)GBP 250m2017: GBP 394m; COR 96%

New (5)

Summary restructured under SFCR-section headings, adding System of governance, Risk profile (six-category list) and Valuation subsections.

Six-category risk list: Insurance, Market, Credit, Liquidity, Operational, Pension, with SCR detail referenced to a QRT template.

Group excess of assets over liabilities stated for the first time: GBP 3,033m SII vs GBP 4,251m IFRS.

Brexit contingency paragraph, including a Scandinavian model application against a hard-Brexit move to Standard Formula.

RSA Luxembourg SA added to the EU subsidiary list.

Changed (3)

Capital table units: GBP m (2017: GBP bn); coverage 170% (2017: 163%).

Purpose sentence introduced, naming 'RSA Group Insurance plc' (transposition).

First underwriting decline since 2013: GBP 250m (2017: GBP 394m), COR 96%, on weather and London Market large losses.

Dropped (2)

The risk-driver pie chart of 2017.

The Enstar legacy-disposal narrative.

Notes this year (1)

Note 1 · The purpose sentence names 'RSA Group Insurance plc', a transposition of RSA Insurance Group plc.

Was this 2018 analysis useful or accurate?

2019

Delta from 2018

⭳ SFCR PDF

Extensive Covid-19 post-balance-sheet disclosure, the 2019 final dividend suspended (8 April 2020), and PRA approval of the Volatility Adjustment for the Group, RSAI, RSA Re and MIC. Group ratio 178%; MIC solo jumps to 1419% as its balance sheet halves [QRT].

2019's results are overwritten by what followed. The Summary states a coverage ratio of “178%” but is explicit about the mechanics: “The Group reported a SII coverage ratio in its Annual Report and Accounts of 168%; the increase of ten percentage points arises from the suspension of the final dividend relating to 2019” [SFCR p.8]*, the Board having “agreed to suspend its final dividend” on 8 April 2020 in the face of the pandemic [SFCR p.9]*. The Covid-19 insertion in the risk profile is unusually quantitative for a post-balance-sheet note, estimating the ratio at “160% at 31 March 2020, after applying the Volatility Adjustment … and excluding the 2019 final dividend accrual” [SFCR p.6]*. For this tracker the key sentence is the one that names the entity: “In March 2020, the Group, RSAI, RSA Re and MIC each received approval from the PRA to apply the Volatility Adjustment … with effect from 31 March 2020” [SFCR p.7]*, MIC's first direct appearance in the Summary narrative; the identical approval sentence recurs in the 2020 Summary, quoted on this dashboard's own 2020 card. It coincides with the largest solo move: MIC's total assets halve to GBP 108.9m and its SCR falls from GBP 9.1m to GBP 3.8m, lifting the solo ratio from 564% to 1419% [QRT]; the Summary states no MIC-specific explanation [Note 2].

Introduction (SFCR pp. 3-4)

Changed: The parent is now abbreviated: “RSA Insurance Group plc (‘RSAIG’)” [SFCR p.3]*; the subsidiary list adds quote-marked abbreviations (“‘RSAI’ or ‘RSAI plc’”) standard text [SFCR p.3].

Changed: The transitional-measures paragraph signals the coming VA, measures not relied on “(Volatility Adjustment will be applied with effect from 31 March 2020)” [SFCR p.4]*.

Business & Performance (SFCR pp. 5)

Changed: The strategy paragraph is rewritten around capability: “RSA has recorded its three best underwriting results this century over the last four years” [SFCR p.5]*.

Changed: Underwriting profit “£346m (2018: £250m)”, combined ratio “94.6% (2018: 96.2%)”; the UK & International recovery to a COR of “95.0% (excluding exit portfolios…)” is the highlighted regional move [SFCR p.5]*.

System of Governance (SFCR pp. 5)

Changed: The governance line now signposts change: “Detail about this and changes during the year is provided in Section B” [SFCR p.5]* (2018: “has not experienced any material changes”) standard text.

Risk Profile (SFCR pp. 6-7)

New: The Covid-19 block: “significant and unprecedented global uncertainty and market volatility”; expected exposure “in areas such as Travel insurance and Business Interruption cover”; figures “not … adjusted for any post balance sheet impacts of COVID-19”; estimated coverage “160% at 31 March 2020” [SFCR p.6]*.

Note: The six-category risk list is unchanged standard text [SFCR p.7].

Valuation (SFCR pp. 7)

Changed: Group excess of assets over liabilities “£3,066m” SII / “£4,342m” IFRS [SFCR p.7]*.

New: The Volatility Adjustment section: “In March 2020, the Group, RSAI, RSA Re and MIC each received approval from the PRA to apply the Volatility Adjustment … with effect from 31 March 2020”, with the buy-and-hold / illiquidity-premium rationale [SFCR p.7]*. MIC is named directly.

Capital Management (SFCR pp. 8-9)

Changed: Capital table, SCR GBP 1,727m, EOF GBP 3,073m, surplus GBP 1,346m, coverage “178%” (2018: 170%) [SFCR p.8]*, with the dividend-suspension reconciliation to the Annual Report's 168% [SFCR p.8]*.

New: “on 8 April 2020 the Board of RSAIG agreed to suspend its final dividend relating to 2019. The Board intends to recommence dividend payments as soon as it is prudent to do so” [SFCR p.9]*.

Note: MIC solo [QRT]: EOF GBP 54.2m, SCR GBP 3.8m, surplus GBP 50.4m, ratio 1419%; total assets GBP 108.9m (2018: GBP 255.4m). No MIC-specific explanation is stated in the Summary [Note 2].

Headline metrics

MIC solo SCR coverage [QRT]1419%2018: 564%

MIC solo EOF / SCR / Surplus [QRT]GBP 54.2m / 3.8m / 50.4m2018: 51.2m / 9.1m / 42.1m

MIC solo total assets [QRT]GBP 108.9m2018: GBP 255.4m, Note 2

Group SCR coverage (stated)178%2018: 170%

New (4)

Covid-19 post-balance-sheet disclosure: Q1 2020 assessment, estimated Group ratio of 160% at 31 March 2020, link to the Q1 trading update.

Final 2019 dividend suspended by Board decision of 8 April 2020; ratio stated 10 points higher than the Annual Report's 168% as a result.

Volatility Adjustment approved by the PRA for the Group, RSAI, RSA Re and MIC, effective 31 March 2020, MIC named directly in the Summary.

RSAIG abbreviation introduced for the parent company.

Changed (3)

Strategy paragraph now cites 'three best underwriting results this century over the last four years'.

Group underwriting profit GBP 346m (2018: GBP 250m); COR 95%.

Waterfall gains pension-contribution, exit-loss and reorganisation-cost lines.

Dropped (1)

The Brexit contingency-planning paragraph of 2018 (superseded by model approvals noted under capital activity).

Notes this year (1)

Note 2 · MIC solo QRT total assets fell from GBP 255m to GBP 109m and the solo SCR from GBP 9.1m to GBP 3.8m; the Group Summary states no MIC-specific explanation (the Group SFCR covers MIC at appendix level only).

Was this 2019 analysis useful or accurate?

2020

Delta from 2019

⭳ SFCR PDF

Covid-19 and the Intact/Tryg takeover dominate: another 'excellent year' with underwriting profit of GBP 502m, over GBP 250m of Covid claims provided for, the Group ratio at a window-high 189%, and the Scheme of Arrangement approved by shareholders in January 2021. MIC solo 1581% [QRT].

2020's Summary is written between two events: the pandemic and the sale of the Group. It calls 2020 “another excellent year for RSA overall” with underwriting profit of “£502m (2019: £346m)” and a combined ratio of “91.9%” [SFCR p.5]*, while estimating Covid-19's net underwriting cost at “£25m”, frequency benefits offset by rebates, direct claims and inflation provisions, and dedicating a section to the response: “Covid-19 related claims of over £250m have been provided for” on top of “claims of some £4.6bn for business as usual” [SFCR p.5]*. The stated coverage ratio reaches its window high of “189%” [SFCR p.8]*, with the waterfall attributing 32 points to underlying capital generation and only 5 to dividends. Above all this sits the takeover: “RSA was subject to a cash offer by a consortium of Canadian insurer Intact and Danish provider Tryg … approved by RSA shareholders on 18 January 2021” [SFCR p.5]*. MIC solo strengthens to 1581% [QRT]; the VA the PRA approved for “the Group, RSAI, RSA Re and MIC” in March 2020 is now an applied long-term guarantee measure [SFCR p.7]*.

Introduction (SFCR pp. 3-4)

Changed: The framing adds Brexit, SII “governs industry regulation and prudential capital requirements within the European Union (‘EU’) and the UK”, and the Group reports “in line with the requirements of the SII regime enacted in the UK, following the UK's exit from the European Union” [SFCR p.3]* standard text.

Changed: “The Group disposed of its other UK regulated insurance subsidiary, British Aviation Insurance Company Limited (‘BAIC’), during the year.” [SFCR p.3]*

Changed: The transitional-measures paragraph is re-based onto the PRA Rulebook and now sits alongside a long-term guarantee measures paragraph for the applied Volatility Adjustment [SFCR p.4].

Business & Performance (SFCR pp. 5)

New: The takeover: “RSA was subject to a cash offer by a consortium of Canadian insurer Intact and Danish provider Tryg, to be implemented by a court-sanctioned Scheme of Arrangement which was approved by RSA shareholders on 18 January 2021.” [SFCR p.5]*

New: The Covid-19 section: “Covid-19 related claims of over £250m have been provided for, on top of a range of other customer support measures from premium rebates to bill forbearance and charitable donations”; “The Group … did not take part in government furlough programmes in any of its territories.” [SFCR p.5]*

Changed: Underwriting profit “£502m (2019: £346m)”, combined ratio “91.9% (2019: 94.6%)”, with Covid-19 estimated to have had “a negative impact of £25m on the underwriting result overall” [SFCR p.5]*; investment income down 16%, “approximately £17m … a result of Covid-19 market impacts” [SFCR p.5]*.

System of Governance (SFCR pp. 6)

Note: One-line signpost retained (“robust system of governance”) standard text [SFCR p.6].

Risk Profile (SFCR pp. 6)

Changed: “Covid-19 has had an unprecedented impact in RSA's business and while it has not fundamentally changed the Group's risk profile the pandemic heightened some risks.” [SFCR p.6]* Market risk becomes “Market risk (including currency risk)” in the six-category list standard text.

Valuation (SFCR pp. 6-7)

Changed: Group excess of assets over liabilities “£3,334m” SII / “£4,730m” IFRS [SFCR p.6]*; “no material changes to the valuation methods … other than the application of the Volatility Adjustment” [SFCR p.6]*.

Note: The VA rationale block (buy-and-hold corporate bonds, illiquidity premium) is carried over nearly verbatim from 2019 standard text [SFCR p.7].

Capital Management (SFCR pp. 7-8)

Changed: Capital table, SCR GBP 1,744m, EOF GBP 3,290m, surplus GBP 1,546m, coverage “189%” (2019: 178%) [SFCR p.7]*; waterfall led by “Underlying capital generation 32” points [SFCR p.8]*.

Note: Internal-model continuous development and Scandinavian hard-Brexit model approvals repeated from 2019 standard text [SFCR p.8].

Note: MIC solo [QRT]: EOF GBP 58.4m, SCR GBP 3.7m, surplus GBP 54.7m, ratio 1581%. Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]1581%2019: 1419%

MIC solo EOF / SCR / Surplus [QRT]GBP 58.4m / 3.7m / 54.7m2019: 54.2m / 3.8m / 50.4m

Group SCR coverage (stated)189%2019: 178%

Group underwriting profit (stated)GBP 502m2019: GBP 346m; COR 92%

New (4)

Intact/Tryg cash offer via Scheme of Arrangement, approved by RSA shareholders on 18 January 2021.

Dedicated Covid-19 section: GBP 4.6bn business-as-usual claims paid, over GBP 250m Covid-19 claims provided for, premium rebates and forbearance, no furlough participation.

UK-enacted SII framing: reporting 'in line with the requirements of the SII regime enacted in the UK' post-Brexit.

BAIC disposal (the separately-managed UK subsidiary leaves the Group).

Changed (4)

Group ratio up 11 points to 189%, the highest of the window; waterfall led by 32 points of underlying capital generation.

Summary restructured to lead 'RSA is a leading international general insurer…' (2019: 'focused international insurer' strategy framing).

Market risk list expanded: 'Market risk (including currency risk)'.

Volatility Adjustment moves from approval news (2019) to applied measure with its own explanatory section.

Dropped (2)

The strategy framing paragraphs: the 'best-in-class' wording of 2017-2018 and the 2019 disciplined-strategy paragraph.

The regional overview (Scandinavia/Canada/UK & International COR breakdown).

Was this 2020 analysis useful or accurate?

2021

Delta from 2020

⭳ SFCR PDF

The Intact takeover lands in the document: the SFCR is produced at the level of Regent Bidco Limited, on a basis other than going concern, with no comparatives; Scandinavia and Canada are gone. Group ratio 165% on the new perimeter; MIC solo 1569% [QRT].

2021 rebuilds the document around a new owner, and much of the tracker's continuity breaks with it. The SFCR is now “produced at the level of RBL rather than RSAIG”, and because that SII group “was not in existence at 31 December 2020, no comparative figures are presented” [SFCR p.3]*. More striking, the report is “required to be prepared on a basis other than that of a going concern”, RBL “is expected to be liquidated in the near future” with supervision reverting to RSAIG, and the document is explicit that this has “no impact on the measurement of the Group's SII balance sheet or capital positions” [SFCR p.6]*. The Summary itself shrinks to its shortest form of the window: business performance is reduced to the 1 June 2021 transaction, RBL's purchase of RSAIG and the disposal of “its operations in Scandinavia and Canada” [SFCR p.5]*, and the capital position to a single uncompared row: SCR GBP 1,432m, EOF GBP 2,369m, coverage “165%” [SFCR p.6]*. MIC's solo position continues its slow build (EOF GBP 62.1m, ratio 1569% [QRT]), and the March 2022 RT1 redemption, “fully funded by an equity capital injection from Intact Financial Corporation”, is trailed as a subsequent event [SFCR p.6]*.

Introduction (SFCR pp. 3-4)

New: “Regent Bidco Limited … is a limited company … and, through its subsidiaries … provides personal and commercial insurance products, operating in the UK, Ireland, Continental Europe and the Middle East.” [SFCR p.3]* RBL “purchased the entire ordinary share capital of RSA Insurance Group Limited … formerly RSA Insurance Group plc” on 1 June 2021 [SFCR p.3]*.

New: “no comparative figures are presented” and the scope covers “only those subsidiaries held as at 31 December 2021” [SFCR p.3]*.

Changed: The covered UK subsidiary list shows “Royal & Sun Alliance Insurance Limited” (formerly plc) alongside RSA Re and MIC standard text [SFCR p.3]; the EU list shrinks to RSA Insurance Ireland DAC and RSA Luxembourg SA after the 1 June 2021 disposals [SFCR p.4].

Business & Performance (SFCR pp. 5)

Changed: The business narrative is reduced to the transaction: “On 1 June 2021, Regent Bidco Ltd purchased the entire ordinary share capital of RSAIG, RSAIG disposed of its operations in Scandinavia and Canada, and regulation of RBL commenced.” [SFCR p.5]* No underwriting or investment figures are stated in the Summary (2020: underwriting profit GBP 502m stated).

System of Governance (SFCR pp. 5)

Changed: “RSA's System of Governance falls under the umbrella of the IFC Group Governance Framework and promotes the safety and soundness of RSA for the benefit of its ultimate shareholder IFC” [SFCR p.5]*, replacing the standalone 'robust system of governance' line standard text.

Risk Profile (SFCR pp. 5)

Note: The six-category risk list is carried over unchanged [SFCR p.5].

New: “The Group has limited direct underwriting or investment exposure to the war between Ukraine and Russia and is vigilant in its adherence to sanctions.” [SFCR p.5]*

Valuation (SFCR pp. 6)

Changed: Group excess of assets over liabilities “£2,535m” on the new RBL basis, uncompared [SFCR p.6]*.

New: The basis-of-preparation paragraph, RBL “expected to be liquidated in the near future”, the SFCR “prepared on a basis other than that of a going concern”, with no impact on SII balance-sheet measurement [SFCR p.6]*.

Capital Management (SFCR pp. 6)

Changed: Capital table, SCR GBP 1,432m, EOF GBP 2,369m, surplus GBP 937m, coverage “165%” [SFCR p.6]*; the waterfall of ratio movements (2017-2020) is gone.

New: “In March 2022 RSAIG redeemed the floating rate Restricted Tier 1 notes … The redemption was fully funded by an equity capital injection from Intact Financial Corporation (IFC) and there is no impact to the total capital position of the RSA Group.” [SFCR p.6]*

Note: MIC solo [QRT]: EOF GBP 62.1m, SCR GBP 4.0m, surplus GBP 58.1m, ratio 1569%. Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]1569%2020: 1581%

MIC solo EOF / SCR / Surplus [QRT]GBP 62.1m / 4.0m / 58.1m2020: 58.4m / 3.7m / 54.7m

Group SCR coverage (stated)165%no comparative (new SII group)

Group underwriting profitNot stated in Summary2022 SFCR comparator: GBP (137)m

New (4)

New reporting entity: Regent Bidco Limited (Intact) group SFCR; RBL bought RSAIG on 1 June 2021; Scandinavia and Canada disposed the same day.

SFCR prepared on a basis other than going concern (RBL to be liquidated; supervision to revert to RSAIG).

Governance re-anchored to the IFC Group Governance Framework.

Ukraine-Russia war paragraph (limited direct exposure; sanctions vigilance).

Changed (3)

Summary radically shortened: no underwriting/investment results, no ratio waterfall, no regional overview.

Covered subsidiary renamed: Royal & Sun Alliance Insurance Limited (from plc).

EU subsidiaries reduced to two (RSA Insurance Ireland DAC, RSA Luxembourg SA) after the Codan/Privatsikring/Holmia disposals.

Dropped (3)

Covid-19 narrative (a 2020 Summary centrepiece).

The Group ratio movement waterfall table (present 2017-2020).

Dividend commentary (2020: a 'Dividends (5)' waterfall row).

Was this 2021 analysis useful or accurate?

2022

Delta from 2021

⭳ SFCR PDF

The corporate ladder settles: RBL is liquidated and supervision reverts to RSAIG under new parent 2283485 Alberta Limited; no capital comparatives are presented. Underwriting recovers to GBP 16m; the UK motor exit and the PIC pension buy-in are announced post-year-end. Group ratio 175%; MIC solo peaks at 2615% [QRT].

2022 tidies the ownership story and quietly breaks the data series. Because “the Group sections of the 2021 SFCR represent[ed] the consolidated position of the Group including RBL”, the report states that “comparative information has not been provided in section E Capital Management, as this could be misleading to the users of this report” [SFCR p.3]*, so the stated 175% coverage stands without a comparator, the second basis change in two years. The underwriting recovery to “£16m (2021: £(137)m)” is qualified by another “£30m de-recognition of software assets” and the December UK freeze [SFCR p.5]*. The forward-looking content is the real substance: the UK personal-motor exit (announced 28 March 2023) with its “£120 million of premium”, “approximately £35 million” of restructuring cost and “approximately £60 million” of capital release [SFCR p.5]*, and the PIC pension buy-in covering “around 99% of total defined benefit assets”, funded partly by “an upfront contribution from the Group of approximately £480m” and expected to trigger a Major Model Change [SFCR p.7]*. MIC solo reaches its highest ratio of the window, 2615% on an SCR of just GBP 2.6m [QRT], unremarked in the Summary.

Introduction (SFCR pp. 3-4)

New: “RBL entered liquidation and ownership of RSAIG was transferred to 2283485 Alberta Limited … As a result, the PRA's group supervision has reverted as per 2020 and prior to the RSAIG level.” [SFCR p.3]*

Changed: “comparative information has not been provided in section E Capital Management, as this could be misleading to the users of this report” [SFCR p.3]*; A-section comparatives are on the RSAIG-consolidated basis.

Note: RSAI appears as “Royal & Sun Alliance Insurance Limited” in the subsidiary list, unchanged from 2021 standard text [SFCR p.3].

Business & Performance (SFCR pp. 5)

Changed: “Total Group underwriting profit was £16m (2021: £(137)m) … impacted by a £30m de-recognition of software assets (2021: £72m)”, December's “prolonged sub-zero temperatures … resulted in burst pipes in thousands of homes”, plus non-catastrophe large losses and inflation in Motor and Home [SFCR p.5]*.

New: The UK personal-motor exit: “RSA is exiting the UK personal lines motor market, representing £120 million of premium for the company”, with MORE THAN customers introduced to Swinton, “approximately £35 million” of Q1 2023 restructuring costs and “approximately £60 million of capital held against motor-related insurance risk” to be released [SFCR p.5]*.

System of Governance (SFCR pp. 5)

Note: The IFC Group Governance Framework paragraph continues unchanged from 2021 standard text [SFCR p.5].

Risk Profile (SFCR pp. 6)

Note: The six-category risk list is unchanged; the Ukraine-Russia sentence is retained [SFCR p.6].

New: “The Group observed the emergence of increased inflationary trends as a key area of focus during 2022 … The Group will maintain claims inflation as a key area of risk and uncertainty throughout 2023” [SFCR p.6]*.

Valuation (SFCR pp. 6)

Changed: Group excess of assets over liabilities “£2,007m” (2021: GBP 2,535m on the RBL basis) [SFCR p.6]*.

Capital Management (SFCR pp. 6-7)

Changed: Capital table, SCR GBP 1,225m, EOF GBP 2,142m, surplus GBP 917m, coverage “175%” [SFCR p.6]*, with no comparative row.

New: The PIC pension buy-in, the Schemes “made up around 99% of total defined benefit assets and obligations”, the premium “initially … funded through the transfer of the majority of the Schemes' assets to PIC, as well as by an upfront contribution from the Group of approximately £480m”, itself “part funded through a capital injection by IFC of approximately £480m”; the Group expects “to seek approval for a Major Model Change during 2023” [SFCR p.7]*.

Note: MIC solo [QRT]: EOF GBP 67.8m, SCR GBP 2.6m, surplus GBP 65.2m, ratio 2615%, the highest of the window. Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]2615%2021: 1569%

MIC solo EOF / SCR / Surplus [QRT]GBP 67.8m / 2.6m / 65.2m2021: 62.1m / 4.0m / 58.1m

Group SCR coverage (stated)175%2021 (RBL basis): 165%

Group underwriting profit (stated)GBP 16m2021: GBP (137)m

New (4)

Parent change: RBL liquidated; RSAIG transferred to 2283485 Alberta Limited; PRA group supervision reverts to RSAIG level.

UK Personal Lines Motor exit announced 28 March 2023: GBP 120m premium, c. GBP 35m restructuring, c. GBP 60m capital release; MORE THAN customers to Swinton.

Pension buy-in with Pension Insurance Corporation announced (27 February 2023): c. GBP 480m upfront contribution, part funded by an IFC capital injection of approximately GBP 480m; Major Model Change expected.

Inflation named a key area of focus (claims costs and investment portfolio).

Changed (3)

Capital comparatives withheld: presenting RBL-basis 2021 figures 'could be misleading to the users of this report'.

Underwriting result GBP 16m (2021: GBP (137)m), including a GBP 30m software de-recognition and December freeze losses.

Group ratio stated at 175% with no comparative row.

Dropped (1)

The RBL non-going-concern basis language (RBL now liquidated).

Was this 2022 analysis useful or accurate?

2023

Delta from 2022

⭳ SFCR PDF

Transformation year: IFRS 17 restates comparatives, the UK personal-lines exit completes in announcement (Motor, then Home and Pet to Admiral), the DLG commercial-lines acquisition is signed (GBP 520m), the pension buy-in books a GBP 727m actuarial loss, and the Solvency UK risk-margin reform adds c. GBP 90m of own funds. Group ratio 165%; MIC solo 2355% [QRT].

2023 is the busiest Summary of the window: in one year the document records the IFRS 17 restatement, the completion in announcement of the full “exit from the UK personal lines market”, Motor (March), then Home and Pet with the Admiral sale “for an initial cash consideration of £85m” (December) [SFCR p.5]*, and the counter-move, the “DLG brokered Commercial Lines acquisition” with “initial cash consideration of £520m paid on 26 October 2023” funded by a “£565m” parent injection and adding “approximately £230m” of SCR [SFCR p.5, p.8]. Two regulatory and balance-sheet mechanics matter for the capital line: the pension buy-in is quantified, a “£6,307m” premium and “an initial actuarial loss of £727m net of tax … recognised in own funds”, offset by a Major Model Change cutting the SCR “by approximately £90m” [SFCR p.7]*, and the first Solvency UK reform lands, SI 2023/1346 “improving RSA own funds by approximately £90m” via the risk-margin recalibration [SFCR p.8]*. The risk taxonomy is rebuilt from six categories to three (“Financial … Insurance … Operational”) [SFCR p.6]*, dropping pension risk as a heading in the year the pension exposure is insured away. The stated Group ratio falls to “165%” [SFCR p.6]*; MIC solo strengthens to a 2355% ratio on EOF of GBP 75.8m [QRT], again without MIC-specific narrative.

Introduction (SFCR pp. 3-4)

Changed: The Group's activity is re-described as “commercial lines insurance, specialist commercial lines insurance, personal property insurance and pet insurance” [SFCR p.3]* (2022: “personal and commercial insurance products”).

Note: The RBL liquidation caveats of 2021-2022 are gone; the Group is presented simply as RSAIG, wholly owned by 2283485 Alberta Limited under IFC standard text [SFCR p.3].

Business & Performance (SFCR pp. 5)

New: “Comparatives are restated following the adoption of IFRS 17 - Insurance Contracts (IFRS 17) on 1 January 2023.” [SFCR p.5]* Underwriting profit “£77m (2022: restated £60m)” [SFCR p.5]*, the 2022 SFCR had stated GBP 16m on the old basis.

New: “On 7 December 2023, the Group announced its exit from the UK Personal Lines Home and Pet market … resulting in a complete exit from the UK personal lines market.” [SFCR p.5]* The Admiral sale carries “potential further consideration of up to £33m” [SFCR p.5]*.

New: The DLG acquisition: “an initial cash consideration of £520m paid on 26 October 2023, with potential for up to a further £30m contingent payment under earnout provisions” [SFCR p.5]*.

Changed: The Motability exit is formalised: “a contract variation was signed to formalise exit arrangements. This has resulted in the reversal of net written premium of £168m … The exit completed with effect from 1 September 2023.” [SFCR p.5]*

System of Governance (SFCR pp. 5)

Note: The IFC governance-framework paragraph is unchanged in substance (lower-case “group governance framework”) standard text [SFCR p.5].

Risk Profile (SFCR pp. 6)

New: The taxonomy is restructured, “Financial risk, including capital, market and credit, and liquidity risk; Insurance risk, including catastrophe and reinsurance, and underwriting risk; Operational risk, including customer risk” [SFCR p.6]*, replacing the six-category list used since 2018 and dropping pension risk as a heading.

Changed: “The wars in Ukraine and Gaza have caused instability in the global economy and markets.” [SFCR p.6]* Inflation remains the running macro theme.

Valuation (SFCR pp. 6)

Changed: Group excess of assets over liabilities “£1,844m” (2022: GBP 2,007m) [SFCR p.6]*.

New: “With effect from 31 December 2023 a statutory instrument, SI 2023/1346, came into effect which resulted in changes to the formula used for the calculation of the risk margin. The impact of the reforms had the impact of improving RSA own funds by approximately £90m.” [SFCR p.6]* The mechanics, cost of capital “from 6% to 4%” and a “tapering factor of 0.975”, are itemised at the end of the capital section [SFCR p.8]*.

Capital Management (SFCR pp. 6-8)

Changed: Group capital table, SCR GBP 1,285m, EOF GBP 2,118m, surplus GBP 833m, coverage “165%” [SFCR p.6]*; no comparative row, the third year running (2021, 2022 and 2023 each print a single row).

Changed: The pension buy-in is fully quantified, total premium “£6,307m”, “an initial actuarial loss of £727m net of tax was recognised in own funds during 2023”, and Major Model Change approval “which reduced the SCR by approximately £90m” [SFCR p.7]*.

New: “the PRA reapproved the Ancillary Own Funds (AOF) item … £250m of nil-paid uncalled share capital”, counting as Tier 2 [SFCR p.7]*; “In June 2023 RSA repurchased and cancelled £40m (nominal value) of its fixed rate Tier 2 … bonds (remaining notional £120m)” [SFCR p.7]*.

Note: MIC solo [QRT]: EOF GBP 75.8m, SCR GBP 3.2m, surplus GBP 72.6m, ratio 2355%. Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]2355%2022: 2615%

MIC solo EOF / SCR / Surplus [QRT]GBP 75.8m / 3.2m / 72.6m2022: 67.8m / 2.6m / 65.2m

Group SCR coverage (stated)165%2022: 175%

Group underwriting profit (stated)GBP 77m2022 restated: GBP 60m

New (6)

IFRS 17 adopted 1 January 2023; comparatives restated.

UK Personal Lines Home and Pet exit; direct operations sold to Admiral Group plc (GBP 85m initial, up to GBP 33m contingent), completing the UK personal-lines exit.

DLG brokered Commercial Lines acquisition: GBP 520m initial consideration paid 26 October 2023, funded by a GBP 565m parent injection; SCR up c. GBP 230m.

Risk-margin reform (SI 2023/1346): cost of capital 6% to 4% plus tapering factor; own funds up c. GBP 90m.

Risk taxonomy restructured to three categories: Financial, Insurance, Operational (2022: six categories).

AOF re-approved: GBP 250m nil-paid uncalled share capital as Tier 2; Tier 2 bonds partially repurchased (GBP 40m).

Changed (4)

Pension buy-in moves from announcement to detail: GBP 6,307m premium, GBP 727m net actuarial loss in own funds, Major Model Change approved (SCR down c. GBP 90m).

Motability exit formalised: net written premium reversal of GBP 168m; exit completed 1 September 2023.

Principal activity re-described: commercial lines, specialist commercial lines, personal property and pet insurance.

Wars in Ukraine and Gaza cited as sources of instability (2022: Ukraine only).

Dropped (2)

Pension risk as a top-level risk category (absorbed into the new three-category taxonomy).

The going-concern-basis caveats of the RBL era.

Was this 2023 analysis useful or accurate?

2024

Delta from 2023

⭳ SFCR PDF

Solvency UK arrives; the DLG commercial-lines transfer completes and the UK personal-lines exit closes; heavy intra-group capital traffic (preferred-share redemption, GBP 182.5m [CALC] of interim dividends, Belair quota share, Unifund commutation). Group ratio recovers to 176%; MIC solo SCR jumps to GBP 8.5m and its ratio falls to 919% [QRT].

2024 is the year the reshaped Group beds in under a new rulebook. The report is now prepared “as required by Solvency UK (SUK) regulations” [SFCR p.3]*, SCR detail is now referenced to “reporting template IR.25.04” [SFCR p.6]* in place of the earlier QRT template, and, a quiet but real capital change, the Group “does not apply any transitional arrangements” [SFCR p.4]*, ending the debt transitional applied since 2016. Underwriting profit was “£291m (2023: £77m)” [SFCR p.5]*, and for the DLG brokered commercial-lines book the “operational transfer was completed on 1 May 2024” [SFCR p.5]*. The capital-activity paragraphs describe unusually heavy intra-group traffic: a GBP 155m preferred-share redemption, GBP 182.5m [CALC] of interim dividends (stated as “£82.5m and £100m”), a new 40% Belair quota share, and the Unifund commutation “for an approximate amount of £115m” [SFCR p.7]. For MIC itself the year is the sharpest solo move since 2019: the solo SCR rose from GBP 3.2m to GBP 8.5m and the solo ratio fell from 2355% to 919% [QRT], but the Group Summary offers no MIC-specific explanation [Note 3].

Introduction (SFCR pp. 3-4)

Changed: “This document sets out the solvency and financial condition of the Group as at 31 December 2024, as required by Solvency UK (SUK) regulations.” [SFCR p.3]*, the SII framing paragraph used since 2018 is replaced standard text.

Changed: The EU subsidiaries are described as subject to “the Solvency II (SII) regulatory framework that applies within the European Union … according to that regime” [SFCR p.4]*, the SII/SUK split made explicit.

Dropped: “The only SII transitional measure that is applied is with respect to the Group's debt arrangements” (2016-2023), replaced by “The Group does not apply any transitional arrangements” [SFCR p.4]*.

Business & Performance (SFCR pp. 5)

Changed: “Total Group underwriting profit was £291m (2023: £77m).” [SFCR p.5]*

Changed: The DLG acquisition moves from agreement to execution: “The operational transfer was completed on 1 May 2024. The transfer of policy renewals started during June 2024 and new business written by the Group started in July 2024.” [SFCR p.5]* Commercial lines now offered “through the RSA, NIG and Farmweb brands” [SFCR p.5]*.

Changed: The personal-lines exit closes, the Admiral sale of direct Home and Pet operations “closed on 31 March 2024” [SFCR p.5]*.

New: “The Belair arrangement was entered into on 1 January 2024” [SFCR p.5]*, intra-group quota shares with Unifund and Belair described in the Summary for the first time.

System of Governance (SFCR pp. 5)

Note: The IFC group governance framework paragraph is unchanged from 2023 standard text [SFCR p.5].

Risk Profile (SFCR pp. 5-6)

Changed: Insurance risk is listed as “including catastrophe and underwriting risk” [SFCR p.5]*: “and reinsurance” (2023) is dropped from the sub-list.

Changed: The geopolitical paragraph pivots to trade policy: “With the recent changes in the U.S. Government, the threat of protectionism increases the risk of tariffs, stagflation and turbulence in the financial markets.” [SFCR p.6]* The Ukraine and Gaza sentence of 2023 is dropped.

Valuation (SFCR pp. 6)

Changed: Group excess of assets over liabilities “£1,886m” on an SUK basis (2023: GBP 1,844m on an SII basis) [SFCR p.6]*; the risk-margin reform paragraph of 2023 is not repeated.

Capital Management (SFCR pp. 6-7)

Changed: Group capital table, SCR GBP 1,215m, EOF GBP 2,144m, surplus GBP 929m, coverage “176%” (2023: 165%) [SFCR p.6]*; comparatives return to the table after three absent years (2021, 2022 and 2023).

New: “In July 2024, the Group redeemed its £125m preferred shares in full. Total consideration paid of £155m was funded via an equity injection from the Group's parent company … At the same time, the Group cancelled its entire share premium account” [SFCR p.7]*; interim dividends “£82.5m and £100m in July 2024 and November 2024 respectively” [SFCR p.7]*.

New: “Effective 1 January 2025, the Group entered into a commutation and release agreement and terminated the retrospective quota share agreement with Unifund … for an approximate amount of £115m.” [SFCR p.7]*

Note: MIC solo [QRT]: EOF GBP 77.7m, SCR GBP 8.5m (2023: GBP 3.2m), ratio 919% (2023: 2355%). No MIC-specific explanation is stated in the Summary [Note 3].

Headline metrics

MIC solo SCR coverage [QRT]919%2023: 2355%

MIC solo EOF / SCR / Surplus [QRT]GBP 77.7m / 8.5m / 69.2m2023: 75.8m / 3.2m / 72.6m

Group SCR coverage (stated)176%2023: 165%

Group underwriting profit (stated)GBP 291m2023: GBP 77m

New (5)

Solvency UK framing: the SFCR is 'as required by Solvency UK (SUK) regulations'; SCR detail referenced to 'reporting template IR.25.04'.

Belair 40% quota share effective 1 January 2024 (reinsurance commission rate of “24.5% (25% from 1 January 2025)”).

Preferred shares (GBP 125m) redeemed in full for GBP 155m, funded by a parent equity injection; share premium account cancelled.

Ordinary interim dividends of GBP 82.5m (July) and GBP 100m (November) to 2283485 Alberta Limited.

Unifund retrospective quota share commuted effective 1 January 2025 for approximately GBP 115m.

Changed (5)

DLG brokered commercial lines: operational transfer completed 1 May 2024; renewals from June, new business from July; NIG and Farmweb brands added.

Admiral sale closed 31 March 2024; decision to transfer the Home and Pet partnerships to other parties or to allow them to expire over time.

Group ratio 176% (2023: 165%).

Transitional measures: the Group no longer applies the debt transitional (2023: only transitional applied).

Insurance risk list shortened: 'catastrophe and underwriting risk' (2023: 'catastrophe and reinsurance, and underwriting risk').

Dropped (2)

The debt-arrangements transitional measure (applied every year 2016-2023).

IFRS 17 restatement language (2023 only).

Notes this year (1)

Note 3 · MIC solo QRT SCR rose from GBP 3.2m to GBP 8.5m (ratio 2355% to 919%); the Group Summary states no MIC-specific explanation.

Was this 2024 analysis useful or accurate?

2025

Delta from 2024

⭳ SFCR PDF

The RSA name disappears: RSAI becomes Intact Insurance UK Limited and the Group rebrands to Intact; Group ratio falls to 167% on a GBP 160m dividend and the final Tier 2 redemption; the DLG Part VII transfer is sanctioned for 1 April 2026. MIC solo ratio 939% [QRT].

2025 closes the RSA era of this document. The covered-subsidiaries list, the one place MIC appears every year, now reads “Intact Insurance UK Limited (Intact UK) … Royal & Sun Alliance Reinsurance Limited (RSA Re) … The Marine Insurance Company Limited (MIC)” [SFCR p.3]*, following the October 2025 rebrand of “RSA, NIG and Farmweb … to Intact Insurance across the UK, Ireland and Europe” [SFCR p.5]*. On capital, the Group's stated coverage fell from 176% to 167%, “predominantly due to a reduction in eligible own funds driven by an interim dividend payment of £160m in June, and redemption of the remaining £120m Tier 2 subordinated GBP bonds in October” [SFCR p.6]*, the redemption “self-funded using existing surplus capital” at a stated cost of “a c.10% reduction in SUK SCR coverage” while improving capital quality [SFCR p.7]*. MIC solo moves the other way: EOF edges up to GBP 79.4m against an SCR of GBP 8.5m, a 939% ratio [QRT]. One wording point is noted: the Introduction reinstates “motor insurance” in the Group's principal activity after the completed UK personal-lines exit, without stating where that business is written [Note 4].

Introduction (SFCR pp. 3-4)

Changed: The subsidiary list is renamed: “Intact Insurance UK Limited (Intact UK)” replaces RSAI [SFCR p.3]*, and the EU subsidiaries become “Intact Insurance Ireland DAC (Intact Ireland)” and “Intact Insurance (Europe) SA (Intact Europe)” [SFCR p.4]*. MIC's own name and place in the list are unchanged standard text.

Changed: The purpose sentence becomes “The purpose of the Solvency and Financial Condition Report (SFCR) is to provide information required by the Prudential Regulation Authority (PRA) rules as at 31 December 2025.” [SFCR p.3]* (2024: “as required by Solvency UK (SUK) regulations”) standard text.

Changed: The Group definition drops the RSA name, “(together referred to in this report as ‘the Group’)”, and the activity list becomes “commercial lines insurance, specialist commercial lines insurance, and personal property and motor insurance” [SFCR p.3]* [Note 4].

Business & Performance (SFCR pp. 5)

Changed: “Total Group underwriting profit was £253m (2024: £291m).” [SFCR p.5]*

New: “As of October 2025, RSA, NIG and Farmweb have officially rebranded to Intact Insurance across the UK, Ireland and Europe.” [SFCR p.5]* Ireland is described through Intact Ireland's “top six position” and the 123.ie direct brand; Europe through brokers in France, Belgium, Spain and the Netherlands [SFCR p.5].

New: The DLG commercial-lines book moves to legal transfer, the Part VII “has been sanctioned by the High Court of England and Wales and approved by the Royal Court of Jersey. The transfer shall take place on 1 April 2026” [SFCR p.5]*.

Note: The Belair intra-group quota share continues; the Unifund arrangement (commuted effective 1 January 2025, per the 2024 SFCR) is no longer mentioned [SFCR p.5].

System of Governance (SFCR pp. 5)

Changed: The governance paragraph is re-worded around “the Intact group governance framework” with “Intact” as ultimate shareholder (2024: “IFC group governance framework” / “IFC”) standard text [SFCR p.5].

Risk Profile (SFCR pp. 6)

Note: The three-category taxonomy (Financial, Insurance, Operational) introduced in 2023 is unchanged standard text; SCR detail is referenced to “reporting template IR.25.04” [SFCR p.6]*.

Changed: The geopolitical paragraph is rewritten around global-trade uncertainty: key risks include “claims-cost inflation driven by energy, commodities and supply-chain disruption; higher cyber and infrastructure-related risk; investment volatility; a rising compliance burden due to diverging rules and regulation; increased operational fragility … and impacts on liquidity” [SFCR p.6]* (2024: US-government/tariff framing).

Valuation (SFCR pp. 6)

Changed: Group excess of assets over liabilities “£1,965m” on an SUK basis (2024: GBP 1,886m) [SFCR p.6]*; the consistency-of-bases sentence is retained standard text.

Capital Management (SFCR pp. 6-7)

Changed: Group capital table, SCR GBP 1,239m, EOF GBP 2,074m, surplus GBP 835m, coverage “167%” (2024: 176%) [SFCR p.6]*; the fall is attributed to the “interim dividend payment of £160m in June” and the Tier 2 redemption [SFCR p.6]*.

New: “in October 2025, the Group redeemed its remaining fixed rate Tier 2 dated guaranteed subordinated bonds … The redemption was self-funded using existing surplus capital in the Group and resulted in a c.10% reduction in SUK SCR coverage; however, the redemption improved the quality of capital in the Group.” [SFCR p.7]*

Note: MIC solo [QRT]: EOF GBP 79.4m, SCR GBP 8.5m, surplus GBP 70.9m, ratio 939% (2024: 919%). Not stated in the Group Summary.

Headline metrics

MIC solo SCR coverage [QRT]939%2024: 919%

MIC solo EOF / SCR / Surplus [QRT]GBP 79.4m / 8.5m / 70.9m2024: 77.7m / 8.5m / 69.2m

Group SCR coverage (stated)167%2024: 176%

Group underwriting profit (stated)GBP 253m2024: GBP 291m

New (3)

Intact rebrand: RSA, NIG and Farmweb officially rebranded to Intact Insurance across the UK, Ireland and Europe from October 2025; the covered UK subsidiary list now shows Intact Insurance UK Limited in place of RSAI.

DLG Part VII transfer sanctioned by the High Court and approved by the Royal Court of Jersey; effective 1 April 2026.

Closing Section E signpost paragraph covering Own Funds, SCR and MCR.

Changed (4)

Covered UK subsidiaries renamed: Intact UK, RSA Re, MIC (2024: RSAI, RSA Re, MIC); EU subsidiaries now Intact Ireland and Intact Europe.

Purpose sentence: information required by 'the Prudential Regulation Authority (PRA) rules' (2024: 'Solvency UK (SUK) regulations').

Group ratio 167% (2024: 176%), attributed to the GBP 160m June interim dividend and the October redemption of the remaining GBP 120m Tier 2 bonds (self-funded from existing surplus capital; the SFCR states a 'c.10% reduction in SUK SCR coverage', against a stated fall of nine points).

Group description drops 'or RSA' from the defined terms; principal-activity line now includes 'personal property and motor insurance'.

Dropped (1)

'RSA' as a defined term for the Group.

Notes this year (1)

Note 4 · The Introduction describes the Group as providing 'personal property and motor insurance' after the completed exit from the UK personal lines market (Motor, Home and Pet). The document attaches no geography to the motor reference.

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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.