WRITTEN NOTICE Major changes to an approved internal model

Size: px

Start display at page:

Download "WRITTEN NOTICE Major changes to an approved internal model"

Kevin Stanley
5 years ago
Views:

1 WRITTEN NOTICE Major changes to an approved internal model To: Legal and General Assurance Society (FRN ) Legal & General Insurance (FRN ) Legal and General Assurance (Pensions Management) (FRN ) (the firms ) Of: One Coleman Street London EC2R 5AA Reference Number: ; ; Date: 16 December 2016 DECISION: (1) In accordance with Regulation 48 and 49 of the Solvency 2 Regulations 2015, the Prudential Regulation Authority (the PRA ) has decided to approve major changes to the firms partial internal model approved in the original Written Notice Internal model approval dated 5 December 2015 (reference , , , (the Original Notice ). (2) This approval is granted on the basis of information: a. Set out in the firms application dated 15 September 2016; b. Listed in the firms supplemental documentation dated 15 September 2016; and c. Listed in the firms addendum provided on 22 November 2016, (together the 2016 Application ). (3) This Written Notice amends the Original Notice, so that the partial internal model applies with major changes. These changes are set out in Annex 1. Effective Date (4) This permission takes effect on 16 December Decision-Maker (5) The decision which gave rise to the obligation to give this Notice was made by David Rule, Executive Director.

2 Publication (6) Details of this approval will be published on the Financial Services Register. Reasons for the Decision (7) The PRA s assessment is that the partial internal model, following the major model change, met the tests and standards at the time the decision was made. Specifically, the PRA is satisfied that: a. the internal model complies with the rules contained in Chapters 2,3 and of the Solvency Capital Requirement Internal Models part of the PRA Rulebook; b. the internal model complies with the requirements set out in Title 1 Chapter VI Solvency capital requirement full and partial internal models of the Commission Delegated Regulation (EU) 2015/35; c. the systems of the undertaking for identifying, measuring, monitoring, managing and reporting risk are adequate; d. the model complies with the requirements of Title 2 Chapter II Section 2 of the Commission Delegated Regulation (EU) 2015/35; and e. the model additionally fulfils the requirements of Chapter 4 of the Solvency Capital Requirement Internal Models 4 of the PRA Rulebook and Title 1 Chapter VI Section 5 of the Commission Delegated Regulation (EU) 2015/35. PRA contacts (8) For more information concerning this matter generally, the firm should contact its usual supervisory contact. David Rule Executive Director Insurance For and on behalf of the PRA

3 ANNEX 1 The approved Internal Model Definition (1) The approved partial internal model is as set out in the internal model application documents submitted to the PRA, provided as part of and as listed in that application on 1 June 2015 and the letter dated 1 June 2015, together with the additional information and documentation listed in the supplemental documentation list provided on 30 November 2015 as amended by the major model change documents in the 2016 Application. (2) The internal model is approved to partially calculate the consolidated Group SCR at the level of Legal & General Group Plc. The entities with a in the Group SCR column in table 1 are those which are included in the model in order to calculate the Group SCR. (3) Entities not included in Table 1 that are included in the calculation of the Group SCR using method 1 (Consolidation) on the basis of the standard formula are integrated with the partial internal model using the integration technique 1 as set out in Annex XVIII of the Commission Delegated Regulation (EU) 2015/35. (4) The internal model is approved to calculate the individual SCR for those entities with a in the Solo SCR column in table 1. (5) Subject to 2 to 4 above, the model is approved to calculate the consolidated Group SCR as the level of Legal & General Group Plc and the individual SCR for each entity indicated in respect of all material and quantifiable risks as at the date of this notice. Table 1 Legal Entity FRN Group SCR ( the Solo SCR Legal & General Group Plc Legal & General Assurance Society Legal & General Insurance Legal & General Assurance (Pensions Management) Legal & General Pensions Legal & General Reinsurance Company Legal & General Finance Plc Legal & General Overseas Operations Legal & General America Inc. Legal & General Resources

4 Legal Entity FRN Group SCR ( the Legal & General Pension Fund Trustee Legal & General Pension Scheme Trustee Insurebeam Legal & General Re Holdings Legal & General Resources Bermuda Legal & General Holdings Legal & General Co Sec City & Urban Developments Legal & General Estate Agencies (FS) Synergy Gracechurch Holdings Winstanley 1 The Cavendish Land Company Legal & General Direct (Holdings) Legal & General Financial Services Legal & General Estate Agencies Adam Kennedy Estate Agents Ellis & Co (Estate Agents) Land & Company William Parker and Ben (Reading) Whitegates (Holdings) Whitegates (Tyne & Wear) Legal & General Share Scheme Trustees Legal & General Capital Investment Haut Investments Cala Group (Holdings) Solo SCR

5 Legal Entity FRN Group SCR ( the Cala 1 Cala Group Antham 1 Legal & General Surveying Services Old Cornwall Key Surveyors Nationwide Key Consultants Mortgages Nationwide Key Mortgage & Property 103 Wardour Street Retail Investment Company Synergy Gracechurch Gracechurch Property 7T Developments Winstanley 2 LGPL Cornwall Legal & General Direct L&G Distribution Services Solo SCR

WRITTEN NOTICE. Variation of internal model approval. Internal model approval. Phoenix Life Assurance Limited (FRN )

WRITTEN NOTICE. Variation of internal model approval. Internal model approval. Phoenix Life Assurance Limited (FRN ) WRITTEN NOTICE Variation of internal model approval Internal model approval To : Phoenix Life Limited (FRN 110418) Phoenix Life Assurance Limited (FRN 117667) PA (GI) Limited (FRN 117668) AXA Wealth Limited