Insurer back new FSA rules on assets
Norwich Union has backed its new 'realistic' accounting regime after posting strong balance sheet results.
The insurance giant said its three main with-profits funds had assets of £4.3bn after meeting liabilities under the Financial Services Authority’s new rules.
These require insurers to calculate their assets on a more realistic basis, including the cost of meeting future policy under guarantees and bonuses.
They are intended to give more transparency to the financial position of insurers.
The balance sheet also showed that the company has more than £2.6bn of surplus capital after meeting its liabilities and covering the company’s risk capital margin.
The calculations were based on the CGNU Life, Commercial Union Life Assurance Company and Norwich Union Life & Pensions funds.
Mark Urmston, chief actuary of Norwich Union Life, said: ‘We see this as a big step forward.’