About FGIC UK Limited

Non-Compliance with Solvency II’s Solvency Capital Requirement (SCR) at 31 December 2018

FGIC UK Limited (“FGIC UK”) is a limited company incorporated under the laws of England and Wales, whose primary regulator is the Prudential Regulation Authority (the “PRA”).  FGIC UK was in the financial guarantee business, but it voluntarily ceased writing financial guarantees in January 2008 and, on 1 July 2009, filed a voluntary variation of permission to remove its ability to write new insurance contracts, which was approved by its UK regulator at the time on 10 July 2009.

Under the European Union’s Solvency II Directive (2009/138/EC), at 31 December 2018, FGIC UK’s Own Funds are £34.5m, and, based on the standard formula, its Minimum Capital Requirement (“MCR”) is £24.2m and its Solvency Capital Requirement (“SCR”) is £96.8m.  FGIC UK therefore has a capital surplus of £10.4m over its MCR and a capital deficit of £62.2m against its SCR at 31 December 2018.

FGIC UK has notified the PRA of its non-compliance with its SCR and about its not having access to incremental capital to remediate this non-compliance.

FGIC UK has already ceased, and has no plans to recommence, writing new business.  FGIC UK’s overriding business strategy is to run off its remaining insured portfolio in an orderly and efficient manner.

2018 FGIC UK Limited Solvency and Financial Condition Report (SFCR)