On that basis, the great and good of UK Insurance plc have been comparing abs this week on both cost and go-live date, with the following revelations;
Legal and General
- "...expect implementation [of Solvency II] could be later than 2014"
- On track to submit IMAP by end 2012 - guessing this means a large amount of tedious rolling forward of balance sheets, SCR etc for the guys in 2013 in order to meet FSA application requirements
- £23m spent on "Investment Projects" for the half year, predominantly related to Solvency II - pro-rated, this is down slightly on 2011's total spend of £56m.
- Bermuda's new capital regime (fishing for equivalence of course) has obliged the Group to send capital to Bermuda itself, reducing their FGD surplus.
- Seem confident that the overhanging Omnibus arguments (equivalence, discount rate methodology, contract boundaries) will affect its SCR surplus
- "...increasing risk of delay in the Solvency II timetable beyond January 2014"
- "...currently on track to deliver all requirements for Solvency II compliance"
- No word on project costs as such
- Costs associated with preparing the businesses for Solvency II for the half year of (eeeekk!) £72m (as opposed to just under £100m for all of 2011)
- Note that a draft of the Level 2 implementing measures were "published in 2011" - I wouldn't call unofficial circulation via national trade organisations "publication" as such!
- Implementation date "...continues to be discussed"
- Content that go-live is still scheduled for 2014
- Interesting, calibrating their EC model to 1-in-1,250, which doesn't copy the vogue of 1-in-2,000 which appears to have landed with larger firms, I guess to save the ratings agencies having to work a bit harder!
- £16m of Solvency II costs for the half year
- "...currently anticipated to be implemented from 1 January 2014"
- "...continue to evaluate actions, including continuing consideration of the group's domicile"
- Total of £27m spent on Solvency II implementation costs in the half year
- £48m at half year - their bigger news on exiting IMAP until 2015 is covered on this blog post.
- £42m at half year for Solvency II and RDR "restructuring programmes" - RDR is a beast in itself, so may be difficult to attribute a portion of that cost, though the guys were in the £50m+ bracket for all of 2011.
- Little in the way of additional Solvency II comment
- £9m in "corporate costs", which includes Solvency II, but doesn't cover all by any stretch
- No additional comment
Some big money getting laid down right now, which was no doubt budgeted as tapering-off by now in previous budgets, alongside (no doubt well briefed) messages of uncertainty on go-live date - let's hope we get it right kids!