Scottish Widows Unit Funds Limited

Transcription

1 Scottish Widows Unit Funds Limited Annual PRA Insurance Returns for the ended 31 December 2015 IPRU(INS) Appendices 9.1, 9.3, 9.4, 9.6

2 Balance Sheet and Profit and Loss Account Contents Long Term Insurance Business: Revenue Account and Additional Information Form 40 Revenue account 1 Form 41 Analysis of premiums 2 Form 42 Analysis of claims 3 Form 43 Analysis of expenses 4 Form 45 Revenue account for internal linked funds 5 Form 46 Summary of new business 6 Form 47 Analysis of new business 7 Supplementary notes to the return 8 Additional information on controllers 10 Directors' Certificate 11 Auditor's Report 12

3 :12:13:13 Long-term insurance business : Revenue account Form 40 Name of insurer Scottish Widows Unit Funds Limited Total business / subfund Long term insurance business Units 000 Financial Previous 1 2 Income Earned premiums Investment income receivable before deduction of tax Increase (decrease) in the value of non-linked assets brought into account Increase (decrease) in the value of linked assets Other income 15 Total income Expenditure Claims incurred Expenses payable Interest payable before the deduction of tax Taxation (2543) 802 Other expenditure Transfer to (from) non technical account 26 Total expenditure Business transfers - in 31 Business transfers - out Increase (decrease) in fund in financial ( ) 39 ( ) ( ) Fund brought forward Fund carried forward (39+49) 59 (0)

4 :12:13:13 Long-term insurance business : Analysis of premiums Form 41 Name of insurer Scottish Widows Unit Funds Limited Total business / subfund Long term insurance business Units 000 UK Life UK Pension Overseas Total Financial Total Previous Gross Regular premiums 11 Single premiums Reinsurance - external Regular premiums 13 Single premiums 14 Reinsurance - intra-group Regular premiums 15 Single premiums 16 Net of reinsurance Regular premiums 17 Single premiums Total Gross Reinsurance 20 Net

5 :12:13:13 Long-term insurance business : Analysis of claims Form 42 Name of insurer Scottish Widows Unit Funds Limited Total business / subfund Long term insurance business Units 000 UK Life UK Pension Overseas Total Financial Total Previous Gross Death or disability lump sums 11 Disability periodic payments 12 Surrender or partial surrender Annuity payments 14 Lump sums on maturity 15 Total Reinsurance - external Death or disability lump sums 21 Disability periodic payments 22 Surrender or partial surrender 23 Annuity payments 24 Lump sums on maturity 25 Total 26 Reinsurance - intra-group Death or disability lump sums 31 Disability periodic payments 32 Surrender or partial surrender 33 Annuity payments 34 Lump sums on maturity 35 Total 36 Net of reinsurance Death or disability lump sums 41 Disability periodic payments 42 Surrender or partial surrender Annuity payments 44 Lump sums on maturity 45 Total

6 :12:13:13 Long-term insurance business : Analysis of expenses Form 43 Name of insurer Scottish Widows Unit Funds Limited Total business / subfund Long term insurance business Units 000 UK Life UK Pension Overseas Total Financial Total Previous Gross Commission - acquisition 11 Commission - other 12 Management - acquisition 13 Management - maintenance Management - other 15 Total Reinsurance - external Commission - acquisition 21 Commission - other 22 Management - acquisition 23 Management - maintenance 24 Management - other 25 Total 26 Reinsurance - intra-group Commission - acquisition 31 Commission - other 32 Management - acquisition 33 Management - maintenance 34 Management - other 35 Total 36 Net of reinsurance Commission - acquisition 41 Commission - other 42 Management - acquisition 43 Management - maintenance Management - other 45 Total

7 :12:13:13 Long-term insurance business : Revenue account for internal linked funds Form 45 Name of insurer Scottish Widows Unit Funds Limited Total business Units 000 Financial Previous 1 2 Income Value of total creation of units Investment income attributable to the funds before deduction of tax Increase (decrease) in the value of investments in the financial Other income Total income Expenditure Value of total cancellation of units Charges for management Charges in respect of tax on investment income Taxation on realised capital gains Increase (decrease) in amount set aside for tax on capital gains not yet realised Other expenditure (1536) (526) Total expenditure Increase (decrease) in funds in financial (19-29) Internal linked fund brought forward Internal linked funds carried forward (39+49) 39 ( ) ( ) (0)

8 :12:13:13 Long-term insurance business : Summary of new business Form 46 Name of insurer Scottish Widows Unit Funds Limited Total business Units 000 UK Life UK Pension Overseas Total Financial Total Previous Number of new policyholders/ scheme members for direct insurance business Regular premium business 11 Single premium business 12 Total 13 Amount of new regular premiums Direct insurance business 21 External reinsurance 22 Intra-group reinsurance 23 Total 24 Amount of new single premiums Direct insurance business 25 External reinsurance 26 Intra-group reinsurance Total

9 :12:13:13 Form 47 Long-term insurance business : Analysis of new business Name of insurer Scottish Widows Unit Funds Limited Total business Units 000 UK Pension / Reinsurance accepted intra-group Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Property linked investment only reinsurance

10 Returns under Insurance Companies Legislation SCOTTISH WIDOWS UNIT FUNDS LIMITED Supplementary notes to appendices 9.1 and 9.3 *4002* Details of items reported as 'other income' or 'other expenditure' 000's Property expenses 430 Bank charges 3 Expenses for asset management services received 231,729 Expenses for Administration 307 F40L25 232,469 *4004* Business transfers-out On 31 December 2015 the Company transferred the long-term fund along with the majority of the shareholders fund assets to Scottish Widows Limited ( SWL ), in accordance with a Court Scheme under Part VII of the Financial Services and Markets Act 2000 ( FSMA ). The total shown as a business transfer out on Form 40 Line 32 is 26,858,378k which is equal to the net of reinsurance mathematical reserves plus declared surplus transferred at the transfer date. No long-term insurance business has been carried on since the end, there is no intention to carry on further any such business. The entity is not carrying on general insurance business. *4009* Material connected-party transactions During the the Company entered into the following material transactions with connected parties: The Company receives reinsurance premiums from and pays reinsurance claims to its immediate parent company Scottish Widows plc, under a reinsurance agreement. The aggregate amount of premiums received during the was 2,438,856k. The aggregate amount of claims paid during the was 4,427,858k. *4401* Asset valuation Linked assets are valued using the FCA Handbook Rules in GENPRU 1.3. Financial assets and instruments used to cover linked liabilities are stated at market value. Stock exchange securities and investments in collective investment schemes have been valued at bid prices. Investment property is shown at open market value as determined by independent valuation. Investment property valuations are carried out by persons who are members of the Royal Institute of Chartered Surveyors and were conducted in accordance with the "RICS Statement of Asset Valuation and Guidance Notes". Other assets have been valued using appropriate international financial reporting standards applicable to the firm for the purpose of its external financial reporting. 8

11 Returns under Insurance Companies Legislation SCOTTISH WIDOWS UNIT FUNDS LIMITED Supplementary notes to appendices 9.1 and 9.3 The Rules in GENPRU to GENPRU may require management to make adjustments to these valuations. *4502* Details of items reported as 'other income' or 'other expenditure' 000's Property expenses 781 Audit fees Insurance Business Transfer - 24,882,000 F45L26 24,882,781 9

12 SCOTTISH WIDOWS UNIT FUNDS LIMITED Interim Prudential Sourcebook for Insurers 9.30 Statement required by Rule 9.30: Additional Information on Shareholder Controllers The immediate shareholder controller of the company during the financial was SW Funding plc. SW Funding plc is a wholly owned and controlled subsidiary of Scottish Widows Financial Services Holdings. Scottish Widows Financial Services Holdings is a wholly owned and controlled subsidiary of Scottish Widows Group Limited. Scottish Widows Group Limited is a wholly owned and controlled subsidiary of Lloyds Bank plc. Lloyds Bank plc is a wholly owned and controlled subsidiary of Lloyds Banking Group plc which was the ultimate shareholder controller of the insurer during the financial period. 10

13 Certificate by directors: long-term insurance business We certify that: a) the return has been properly prepared in accordance with the requirements in IPRU (INS), GENPRU and INSPRU; b) we are satisfied that throughout the financial in question, the insurer has complied in all material respects with the requirements of the Fundamental Rules, SYSC as well as the provisions of IPRU(INS), GENPRU and INSPRU. c) in our opinion premiums for contracts entered into during the financial and the resulting income earned are sufficient, under reasonable actuarial methods and assumptions, and taking into account the other financial resources of the insurer that are available for the purpose, to enable the insurer to meet its obligations in respect of those contracts and, in particular, to establish adequate mathematical reserves; d) we have, in preparing the return, taken and paid due regard to- i. advice from every actuary appointed by the insurer to perform the actuarial function in accordance with SUP R The certificate required by IPRU(INS) Appendix 9.6 paragraph 1(1)(b)(ii) in respect of compliance since the end of the financial in question with the requirements in SYSC, Fundamental Rules and the provisions of IPRU(INS), GENPRU and INSPRU and ongoing compliance has not been provided. This is because these requirements have been replaced as from 1 January 2016, the commencement date of Solvency II, so the firm is subject to a new regulatory regime. Andy Parsons Ronnie Taylor Jim Black Date : 21 March

14 Auditors report: Regulatory Return for a life insurance company SCOTTISH WIDOWS UNIT FUNDS LIMITED UK branch business Independent auditors report to the directors pursuant to rule 9.35 of the Interim Prudential Sourcebook for Insurers We have audited the following documents prepared by the insurer pursuant to the Accounts and Statements Rules set out in Part I and Part IV of Chapter 9 to IPRU(INS) the Interim Prudential Sourcebook for Insurers, GENPRU the General Prudential Sourcebook and INSPRU the Prudential Sourcebook for Insurers ( the Rules ) made by the Prudential Regulation Authority under section 137G of the Financial Services and Markets Act 2000: Forms 40, 41, 42, 43 and 45 (including the supplementary notes) on pages 1, 2, 3, 4 and 5 ( the Forms ); We are not required to audit and do not express an opinion on: Forms 46 and 47 (including the supplementary notes) on pages 6 and 7; the certificate required by IPRU(INS) rule 9.34(1) on pages 11. Respective responsibilities of the insurer and its auditors The insurer is responsible for the preparation of an annual return under the provisions of the Rules. Under IPRU(INS) rule 9.11 the Forms are required to be prepared in the manner specified by the Rules and to state fairly the information provided on the basis required by the Rules. The methods and assumptions determined by the insurer and used to perform the actuarial investigation are required to reflect appropriately the requirements of INSPRU 1.2. It is our responsibility to form an independent opinion as to whether the Forms meet these requirements, and to report our opinion to you. We also report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the Forms are not in agreement with the accounting records and returns; or we have not received all the information we require for our audit. This report has been prepared for the directors of the insurer to comply with their obligations under IPRU(INS) rule 9.35 and for no other purpose. We do not, in providing this report, accept or assume responsibility for any other purpose save where expressly agreed by our prior consent in writing. Basis of opinion We conducted our work in accordance with Practice Note 20 'The audit of insurers in the United Kingdom (Revised)' issued by the Auditing Practices Board. Our work included examination, on a test basis, of evidence relevant to the amounts and disclosures in the Forms. The evidence included that previously obtained by us relating to the audit of the financial statements of the insurer for the financial. It also included an assessment of the significant estimates and judgements made by the insurer in the preparation of the Forms. We planned and performed our work so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give 12

15 reasonable assurance that the Forms are free from material misstatement, whether caused by fraud or other irregularity or error and comply with IPRU(INS) rule In accordance with IPRU(INS) rule 9.35(1A), to the extent that any document, Form, statement, analysis or report to be examined under IPRU(INS) rule 9.35(1) contains amounts or information abstracted from the actuarial investigation performed pursuant to IPRU(INS) rule 9.4, we have obtained and paid due regard to advice from a suitably qualified actuary who is independent of the insurer. Opinion In our opinion: (i) the Forms fairly state the information provided on the basis required by the Rules and have been properly prepared in accordance with the provisions of those Rules; and (ii) the methods and assumptions determined by the insurer and used to perform the actuarial investigation appropriately reflect the requirements of INSPRU 1.2. PricewaterhouseCoopers LLP Chartered Accountants Date 13