Content of Participatory Reports

For AKG Provider Financial Strength Assessment Reports

 The information currently included in each Participatory Report in AKG's series of Provider Financial Strength Reports is structured as follows:

Inside Front Cover:

About This Financial Strength Assessment

 An overview and further insight into Financial Strength and AKG's viewpoint into analysis.

Table of contents

 A list of contents found inside the Report.

Contact information

 AKG's address, phone number, general email address and website URL.

Rating & Assessment Commentary:


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.

Where applicable for insurance companies, more granular financial strength ratings for Non Profit; Unit Linked and With Profits business is shown, see the 'Guide to AKG Ratings' for further details of the methodology used. Also supporting ratings for Service, Image & Strategy and Business Performance are shown.


A short section consisting of bullet points which condense key contributory factors for the given rating(s) and the assessment.


 Further explanatory commentary specifically related to the Strength Rating(s).

Further explanatory commentary specifically related to the Supporting Ratings.

Group & Parental Context:


A broad overview of the background to the group structure of the companies covered by the report. This may include some financial tables where it is appropriate to show them here rather than at the rated company level.

Group Structure (Simplified)

A simplified diagrammatic representation of the relationship between the key companies in the group.

Company Analysis:

Basic Information

 The generic type of company (e.g. Life Insurer).

The ultimate owner and controller, which may be different, to the company (or the majority owner if there is more than one). For UK registered companies, this information is disclosed in the company’s statutory accounts. For overseas owners, the country of domicile is also shown.

The year that the current corporate entity started operating, which is usually the year of incorporation.

The country where the entity is legally constituted or formed and whose laws of business and tax it has to follow in respect of that formation.

The address 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).

A contact telephone number, general email address and the URL of the brand's main website.

A short list of the senior individuals considered to be of most interest to readers, such as chief executive, finance director etc.

A broad overview of the general background of the company, including any significant historical changes such as predecessor companies, transfers/mergers, name changes etc.


An outline of key elements of the company's system of governance and how this is arranged.

An outline of key elements of the company's risk management and how this is arranged.

An outline of key elements within the organisation and specifically that company's administrative functions and infrastructure.

Details of measurement (internal and external) presented by the company, or available in the market, on how its service performance compares within internal and/ or external measurement. This might include Awards and Standard Surveys.

Details of any relevant outsourcing arrangements in respect of policy administration and other services.


How the organisation seeks to position itself in the market including the image it aspires to and how this is achieved. This is both currently and in terms of planned future development.

The organisations existing proposition set (products and services) and its outlook for future development.

Financials (Life Insurance Company)

A table showing the breakdown of the company's long-term business assets over the company's last three accounting periods, valued on a Solvency II basis.

A table showing the company’s long-term business liabilities and excess of assets over liabilities over the company’s last three accounting periods. Liabilities are split as the following:

Excess of assets over liabilities is the amount by which Assets (from the previous table) are in excess of Liabilities, at each reporting period end.

Technical provisions representing the amount that the insurance company would have to pay in order to transfer its obligations immediately to another insurance company, in respect of Life or Health contracts written on a similar technical basis as life insurance (i.e. long term business); SLT stands for “Similar to Life Techniques”. The technical provisions consist of a best estimate liability and a risk margin.

Expenses incurred in the servicing of life insurance obligations, broken down into each reported business line.

Details of the company's solvency requirement, broken down by type of risk.

A table showing the company's total eligible own funds to meet the SCR, classified into tiers of capital. This is shown as at the end of the last three accounting periods, as available. The excess of own funds over the SCR is also shown together with the SCR Ratio, which is a key indicator of coverage.

Gross Written Premiums (GWP) on life insurance business, broken down into each reported business line.

Gross Written Premiums (GWP) on life insurance business, broken down by the home country and the top 5 other countries.

A table showing the company's profits in each of the last three accounting periods, showing, profit/loss before tax, tax, profit/loss after tax, other comprehensive income, dividends and retained profit/loss.

A table showing net life premiums earned and net life claims incurred together with the resultant in-flow or out-flow, being the difference between premiums and claims.

Note: For General Insurance Companies, different financials are shown, with the appropriate tables being:

Financials (other types of company)

A table showing, if known, the available capital resources, capital resources requirement (CRR) and excess capital resources at the end of the last three accounting periods. The CRR Coverage Ratio is also shown being capital resources expressed as a percentage of the CRR at the end of the last three accounting periods.

Previously referred to as the ‘Balance Sheet’, this lists the assets, current and long-term liabilities, and equity, or net assets, of a company on the final date of each of the last three reporting periods.

A table showing the equity at the start and end of a reporting period together with any increases, decreases or any other significant changes in the owners’ equity/financial interest in the business, over the latest three reporting periods.

Previously referred to as a Profit and Loss Statement (or similar), this shows a company's financial performance over the last three accounting periods, specifically a summary of the revenues generated and expenses incurred (through both operating and non-operating activities) together with any tax, other income, dividend paid and ultimately profits earned and retained.

A table analysing three key financial ratios in each of the last three accounting periods, where available: operating margin, pre-tax profit margin and employee costs as a percentage of revenue.

Shows how much cash the business generates and how that cash is spent, over the latest three reporting periods, broken down where available into operating, investing and financing activities to show more clearly the sources, and usage, of cash, together with the card and cash equivalents at the end of the reporting period.

Sometimes also called ‘funds under management’ (FUM), this is a measure of the total market value of all the financial assets which the entity manages on behalf of its clients, on the final date of each of the last three reporting period. AuM is shown at the beginning and end of the reporting period, together with inflows, outflows and market and other movements over the period. The growth rate over the period is shown as a percentage. Net flows are also shown as a percentage of the opening AuM.

Explanatory comments from AKG in respect of the tables and any other relevant financial information shown throughout, below the relevant tables.




Further explanation into Financial Strength and AKG's focus.

Rating definitions


About AKG

A brief overview of AKG as an independent organisation and how it is situated within the market.

Related Links

Contacting AKG

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