Capital strength of with-profits providers on the up

The FSA says compared with June 2004, the firms’ aggregate surplus assets over liabilities had improved by 16% by the end of same year. Between June 2004 and January 2005, the realistic working capital of with-profits firms increased by 8% to £24.9bn. The FSA enabled a number of firms to include their support arrangements in their assets which took the total aggregate realistic working capital to £26.7bn, some 16% higher than in June 2004. Overall capital held by firms at £81.1bn exceeded the capital resource requirement (46.3bn) by 75%, while the FSA claims the aggregate holding of eq...