Prism results show insurers are well-positioned
Fitch Ratings has said UK insurers appear to be strongly capitalised and well-positioned to cope with the regulatory challenges posed by Solvency II, according to results from Prism, the agency's global economic capital model.
UK life insurers' average Prism score was 'AA+' at end-2006, while for UK non-life insurers it was 'A'. The scores were generally consistent with Fitch's view of capital adequacy; where inconsistent, the variation was not material. The introduction of Prism will therefore not result in rating changes to UK insurers.
Chris Waterman, managing director in Fitch's Insurance Group in London, said: "Economic capital for the UK life and non-life sectors continued to grow during 2006 due to strong equity markets, the absence of major catastrophes and an improved operating environment.
"However, continued volatility in capital markets, tougher credit fundamentals and price softening in some non-life businesses may lead to downward pressure on economic capital levels in 2007-08."
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
