Financial Soundness

A strong capital base

Solvency II regulations have been designed to help insurance businesses, such as Royal London Ireland, calculate their available capital (which is broadly assets minus liabilities), assess and manage their risks and ensure that they hold sufficient capital to take account of those risks.

Royal London Ireland is very well capitalised with a solvency ratio of 186% (as at 31 December 2024).

This shows that as well as having enough capital to pay all our liabilities, including predicted future claims, we have 1.86 times the capital required under Solvency II rules.

Solvency and Financial Condition Report (SFCR)

As our 2022 Solvency and Financial Condition Report (SFCR) highlights:

"In alignment with the Royal London Group ... the company's Purpose is 'Protecting today, investing in tomorrow. Together we are mutually responsible'. It is focused on achieving three overarching outcomes: Helping build financial resilience, Moving fairly to a sustainable world and Strengthening the mutual choice for customers. Although Royal London Ireland is not a mutual, being owned by one enables it to take a
unique customer-centric approach and focus on sustainable growth over the long term.

2022 was a successful year for Royal London Ireland.... and the first two pension products were launched into the market."

A ratings

Standard & Poor’s reaffirmed our parent company's A rating for financial strength and stability in October 2024, as did  Moody's (A2) in August 2024. * 

* Our parent company, The Royal London Mutual Insurance Society Ltd. received an A (Stable) Counterparty Credit Rating from Standard & Poor’s in October 2024 and an A2 (Stable) Insurance Financial Strength Rating from Moody’s in August 2024.