Abbey topped up SMA with-profits to meet realistic reporting

According to Abbey, the closed SMA’s with-profits fund has a statutory solvency margin of 170% while the closed SP fund has an SSM of 250%. That said, the FSA recently pointed out it would not be possible to compare the SSM of different companies at least until next year as companies are expected to interpret the use of these new regulations differently in the early months of their use. Moreover, Abbey did make another “substantial non-refundable contribution” to the Scottish Mutual fund, financed by past life company provisions, of around £400m prior to the review, having already add...