Financial security
Partnership is a well capitalised and solvent privately owned company. It is regulated by the Financial Services Authority (FSA), meaning that it has to meet the FSA's requirements regarding its capital position and solvency in exactly the same way as major listed companies such as Prudential and Norwich Union.
The most recent independent validation of Partnership's financial position was issued by AKG Actuaries & Consultants Ltd, a consultancy company which specialises in analysing the financial strength of life assurance companies. This report was published at the end of November 2010 and rated Partnership 'B' (strong) for financial strength. Read full report AKG 2010.
Partnership is backed with capital provided by its Senior Management and by Cinven, an independent investor. It is Partnership’s substantial financial backing that has given us the freedom to focus on what we do best - developing and delivering enhanced financial plans for people in ill health. Read full Reports & Financial statements by following the links 2009 and 2010.
Investment Policy
Partnership has always taken a prudent approach to investment to ensure the best level of security for policyholders whilst maintaining competitive annuity rates. Our investment policy matches, as far as possible, our asset exposure to that of our liabilities. Primarily this means investing in corporate bonds and other low risk assets such as equity release assets. Investment decisions are overseen by the Chief Investment Officer who ensures that our board approved risk policy is implemented efficiently to protect the financial strength of the company whilst maintaining competitive annuity rates.
Reinsurance
We always have access to a panel of reinsurers to reduce our exposure to any one organisation. We have built up strong, long-term working relationships with several global reinsurers, all of whom are prepared to follow our underwriting basis. Through these relationships approximately 78% of our annuity payments in 2009 were recovered from reinsurers, thereby signifcantly improving our policyholder security.