Financial security

Partnership is authorised and regulated by the Financial Services Authority and participates in the Financial Services Compensation Scheme (FSCS). Partnership is highly rated by actuarial and consultancy firm AKG in their 2006 and 2007 Company Profile and Financial Strength reports, with the full report being available here.

Using the FSA’s “risk based” (the Independent Capital Assessment.(ICA)) to derive the amount of capital required to ensure the solvency of the company to a high level of probability (the 99.5% level), the required capital is significantly below the amount which we already hold to meet the FSA’s minimum regulatory requirement (Pillar 1). (As at March 2007.)

We continually monitor our solvency position to ensure the highest levels of policyholder security, maintaining this at an optimal level of approximately 140% of the FSA minimum requirement.

We invest only in investment grade bonds (‘BBB’ and above) and cash equivalent instruments – we do not invest in equities or derivatives. We closely match our investment assets to our insurance liabilities in order to protect our capital position against adverse market movements.

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 85% of all of our risks, thereby significantly improving our policyholder security. We only use reinsurers with a rating of 'A-' and above.

Financial backing

Partnership is backed with capital provided by Phoenix Equity Partners, 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.