Contents of Non-Participatory Reports
For AKG Offshore Profile & Financial Strength Reports
The information included in each Non-Participatory Report in AKG's series of Offshore Profile & Financial Strength Reports issued before September 2017 was structured as follows:
Information on the main company:
For each report, detailed analysis is provided in respect of the company which is judged to be the primary operating entity within the group.
- Company Type
The generic type of company (usually Life Insurer), and the country of registration.
The ultimate owner of the company (or the majority owner if there is more than one owner). For UK registered companies, this information is disclosed in the company’s statutory accounts. For overseas owners, the country of domicile is also shown.
- Open to New Business?
Whether the company is open to new long-term business or not. Companies that only write increments on existing policies and/or only accept new members on existing pension schemes are treated as ‘closed’ for this purpose.
- Year Established
The year that the current corporate entity started operating, which is usually the year of incorporation.
- Head Office
The address and contact numbers of the Head Office (usually defined as the location of the company’s most senior management. Need not necessarily be the company’s registered office address.)
The URL of the brand's main website.
- Key Personnel
A short list of the senior individuals considered to be of most interest to readers, such as chief executive, finance director etc.
- Company Background
A broad overview of the general background of the company, including any significant historical changes such as predecessor companies, transfers/mergers, name changes etc.
Overall Financial Strength
A brief summary of the key factors that AKG feels are most pertinent to its assessment of the company’s Overall Financial Strength.
- Overall Financial Strength Rating
AKG’s assessment (on a scale of A, B+, B, B-, C, D) of the company’s Overall Financial Strength. See the ‘Guide to AKG Ratings’ for further details of the methodology used.
Key Financial Data
- Long Term Business Admissible Assets
A table showing the breakdown of the company’s long-term business assets over the company’s last three accounting periods, excluding any which are inadmissible. The table also shows free assets and the free asset ratio. The ‘excess of available assets and implicit items over the required minimum margin’ disclosed in the company’s returns is commonly referred to as the ‘free assets’. The free asset ratio is the free assets expressed as a percentage of the total long-term admissible assets. Explanatory comments from AKG are included immediately below the table.
- Long Term Business Liabilities & Margins
A table showing the company’s long-term business liabilities and margins (both gross and net of reinsurance) over the company’s last three accounting periods, together with the required minimum margin ('RMM') for solvency margin purposes and the RMM coverage (being the free assets plus the RMM, expressed as a multiple of the RMM). The concept of ‘liabilities and margins’ is effectively defined by the regulatory disclosure requirements. The usual position is that a company’s total long-term assets (as shown in the earlier table) equals its liabilities plus any ‘margins’ it holds (such as investment reserves, and any surplus amounts carried forward inside its long-term funds). Explanatory comments from AKG are included immediately below the table.
New Business Data
- New Single Premiums
A table showing the mix of the company’s new single premium business (by product type, and by UK and Other) over the last three accounting periods.
- New Regular Premiums
A table showing the mix of the company’s new regular premium business (by product type, and by UK and Other) over the last three accounting periods. Followed by explanatory comments from AKG about the new business product mix and trends therein.
Further brand-related information:
An overview of the methods by which the organisation distributes its products for the brand concerned.
- Image and Strategy
AKG’s views on how the brand is perceived in the marketplace and the current strategy adopted.
- Overall Product Philosophy
The organisation’s outlook as to the range of products it offers under the brand name.
An overview of the organisation’s approach to servicing business under the brand name.
- Overall Approach
An overview of the organisation’s approach to managing the investments of the long-term funds. The names of any investment management firms used are shown wherever possible, together with details of any relevant investment principles followed.
- Funds Under Management
The current amount of funds under management within the life operation, any larger group that it is a part of, and/or the primary fund managers. The objective is to put the scale of the operations of the respective parties into perspective.
AKG's comments on how the brand has performed during the year under review, particularly relative to its peers.