UK P&I Club N.V. - Solvency and Financial Condition Report
This document is the first Solvency and Financial Condition Report (“SFCR”) of UK P&I Club N.V. (UKNV).
It explains the company performance over the extended book year of 28 November 2018 until 20 February 2020. This document covers UKNV’s business and performance, its system of governance, risk profile, valuation for solvency purposes and capital management.
The ultimate Administrative Body that has the responsibility for all of these matters is the UKNV’s Management Board, under close supervision of the Supervisory Board. The Management Board has installed various governance and control functions to monitor and manage the business.
A strong first year
The first financial year has been completed without incurring unexpected risks. With eligible own funds of US$38m, the company’s SCR ratio is 258%. This is well above the Solvency II requirements as well as UKNV’s internal risk appetite thresholds. However, this level of capital is required to support UKNV’s business plan going forward as indicated by the ORSA. The MCR ratio is 932%.
UKNV has a low risk appetite and manages its business in a prudent manner. Risks caused by the Covid-19 pandemic are unlikely to have a severe impact on UKNV’s business model as well as solvency levels in the foreseen future.