Defined benefit scheme has deficit of £11m as liabilities increase

FirstCity Insurance Group's pension scheme had a deficit of £11m, according to documents.Its defined benefit staff pension scheme was worth just under half the value of its liabilities, according to documents filed at Companies House. The scheme was closed to new members from 30 September 2001.A full valuation was carried out at 1 January 2002 and updated to 31 May 2003, the end of the group's financial year.The figures are contained in the group's annual report for the year ended 31 May 2003.The scheme was 72% funded at 1 January 2002. By 31 May 2003 that figure had sunk to 49% when the total market value of its assets was £10.68m, but the actuarial value of its liabilities was £21.65m.The group put £548,000 into the scheme in the year to 31 May 2003 and will make monthly payments of £82,000 to help top it up.The group's total headcount increased to 202 in the period from 190 in 2002. The group has two new defined contribution schemes to replace the defined benefit scheme. Its business reported a successful year, with pre-tax profits increase to £1.6m from a loss of £98,000.Turnover was up by 21% to £21.7m in the year from £18m in 2002. Operating profit was £1.7m against a loss of £44m in 2002.FirstCity Insurance Group Ltd is the parent company of Lloyd's broker First City.

Results

  • Pre-tax profit up to £1.6m from a loss of £98,000
  • Brokerage up 21% to £21.7m from £18m