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 201% (as at 31 December 2021).
This shows that as well as having enough capital to pay all our liabilities, including predicted future claims, we have 2.01 times the capital required under Solvency II rules.
Solvency and Financial Condition Report (SFCR)
As our 2021 Solvency and Financial Condition Report (SFCR) highlights:
"Due to the nature of its business and investment portfolio, the Company was not affected materially by the changed economic environment and remained very well capitalised throughout the year. As the Company and its service providers were well prepared for remote working, operations and services to customers continued
seamlessly during 2021."
Standard & Poor’s reaffirmed our parent company's A rating for financial strength and stability in April 2022, as did Moody's (A2) in July 2022. *
* Our parent company, The Royal London Mutual Insurance Society Ltd. received an A (Stable) Counterparty Credit Rating from Standard & Poor’s in April 2022 and an A2 (Stable) Insurance Financial Strength Rating from Moody’s in July 2022.