Pearl is the “financially weakest” company, last week's Money Marketing survey shows. In relation to the comments made about Pearl, the following matters not included in the article are important.
Pearl Assurance met all statutory solvency require-ments at December 31, 2001 based on the regulatory returns submitted. Comments from KPMG in relation to the Money Marketing Financial Strength Survey were not intended to indicate that Pearl Assurance had not met these requirements.
Based on the regulatory returns submitted in line with solvency regulations, Pearl had a free-asset ratio of 4.6 per cent at December 31, 2001. On this basis, there are a number of companies with a lower free-asset ratio than Pearl.
The survey analyses the regulatory solvency position of the UK life businesses. Regulatory solvency is calculated on a formula, as required by the FSA, and does not reflect the full solvency position of the companies involved as regulatory solvency definitions exclude select company assets.
The survey takes no account of changes that may have occurred to the statutory solvency position since December 31, 2001.