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Wednesday, 22 February 2012

FTSE results and spare capital - St James's Place

More results on the drip here, this time from St James's Place - pretty sterling effort on EV and IFRS front, however I was more interested in their 2012 year-end take on Solvency II. They are retaining their view that not only will there not be an adverse impact on their balance sheet, but there will be a reduction in capital required (p27).

Not sure whether this factors in any shenanighans around contract boundaries and recognition of future profits which still seem to be up in the air - bearing in mind their product base, I'm guessing changes in these would matter, but if the forecast is "less capital requried", good luck to them!

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