154 JUST GROUP PLC Annual Report and Accounts 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
34 CAPITAL continued The Group’s objectives when managing capital for all subsidiaries are: • to comply with the insurance capital requirements required by the regulators of the insurance markets where the Group operates. The Group’s policy is to manage its capital in line with its risk appetite and in accordance with regulatory requirements; • to safeguard the Group’s ability to continue as a going concern; • to continue to provide returns for shareholders and benefits for other stakeholders; and • to provide an adequate return to shareholders by pricing insurance and investment contracts commensurately with the level of risk. Group entities that are under supervisory regulation and are required to maintain a minimum level of regulatory capital include: • Just Retirement Limited and Partnership Life Assurance Company Limited – authorised by the PRA, and regulated by the PRA and FCA. • HUB Financial Solutions Limited, Just Retirement Money Limited and Partnership Home Loans Limited – authorised and regulated by the FCA. The Group and its regulated subsidiaries complied with their regulatory capital requirements throughout the year. Group capital position (unaudited) The Group’s estimated capital surplus position at 31 December 2019, which is unaudited, and is stated after including 12 months’ amortisation of transitional relief, was as follows: Solvency Capital Requirement MinimumGroup Solvency Capital Requirement 2019 1 £m 20182 £m 2019 £m 2018 £m Eligible Own Funds 2,562 2,284 1,928 1,763 Capital Requirement (1,814) (1,589) (444) (393) Excess Own Funds 748 695 1,484 1,370 Coverage ratio 141% 144% 434% 449%
1 Estimated regulatory position. 2 As reported in the Group’s Solvency and Financial Condition Report as at 31 December 2018.
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