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.

Independent validation of Partnership's financial position can be obtained from a number of sources. The most recent one was issued by AKG Actuaries & Consultants Ltd, a consultancy company which specialises in analysing the financial strength of life companies. This report was published at the end of October 2008 and awarded Partnership 4 out of 5 stars based on Financial Strength. Click the following links if you would like to view the full 2009, 2008, 2007 or 2006 report.

Partnership is backed with capital provided by Cinven, an independent investor, HBOS and major international reinsurers. 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.

Investment Policy

Partnership has always taken a cautious approach to investment to ensure the best level of security for policyholders whilst maintaining competitive annuity rates. The investment policy is to invest primarily in corporate bonds, gilts, cash and other low risk assets on a "close match" basis. Partnership has never invested in equities, property, hedge funds, mortgage asset backed securities or collateral debt obligations (the technical names for the groups of assets which include packaged sub prime mortgages). There are strict rules on the quality and exposure to any one stock and the portfolio is well diversified to avoid over exposure to any one area of the market.

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, we have reinsured approximately 86% of all of our risks, thereby significantly improving our policyholder security.