a real long-term investment 
                                                                                  return on capital and the Board has 
                                                                                  long accepted a high appetite for 
                                                                                  variable investment 
                                                                                  returns. When we feel it is 
                                                                                  appropriate we will use derivatives 
                                                                                  to reduce equity exposure. 
                                                                                  A small amount of hedging of equity 
                                                                                  risk was in place during the first 
                                                                                  half of 2014. 
                                                                                  We manage our exposure to 
                                                                                  liabilities in our overseas 
                                                                                  businesses by holding appropriate 
                                                                                  levels 
                                                                                  of cash and investments in local 
                                                                                  currencies. We ensure that currency 
                                                                                  risk is appropriately 
                                                                                  monitored and controlled and is 
                                                                                  overseen by our Group Finance 
                                                                                  function to try and reduce the 
                                                                                  impact of fluctuating currency 
                                                                                  rates. Currency risk arising from 
                                                                                  holding overseas equities 
                                                                                  is accepted as part of the decision 
                                                                                  to invest in such assets. 
                                                                                  Further information on this risk is 
                                                                                  given in note 4 to the full 
                                                                                  financial statements. 
                                                                                  This risk has not changed materially 
                                                                                  over the year. 
--------------------------------------  --------------------------------------  -------------------------------------- 
 
  Credit Risk                             Our principal exposure to credit        Reinsurer credit risk is controlled 
  Credit risk                             risk arises from reinsurance, which     by the Group Reinsurance Security 
  The risk of non-payment of their        is central to our business              Committee, principally 
  obligations by counterparties and       model.                                  through careful selection and 
  financial markets borrowers.            Additional credit risk arises from      monitoring of reinsurance partners. 
                                          our investment in debt securities,      All reinsurers on the 2014 
                                          cash deposits and amounts               reinsurance programme had a minimum 
                                          owed to us by intermediaries and        rating of A minus from S&P or an 
                                          policyholders.                          equivalent agency at 
                                                                                  the time of purchase with the 
                                                                                  exception of MAPFRE RE whose rating 
                                                                                  was adversely impacted by 
                                                                                  the sovereign rating of Spain. 
                                                                                  However, MAPFRE RE was upgraded by 
                                                                                  S&P to A minus in February 
                                                                                  2014 and then to A in May 2014 with 
                                                                                  a stable outlook. 
                                                                                  Reliance on a single counterparty 
                                                                                  increased during 2014 due to the 
                                                                                  reinsurance arrangement 
                                                                                  that Ansvar Australia has with 
                                                                                  National Indemnity, who are part of 
                                                                                  the Berkshire Hathaway 
                                                                                  Group; however, they have a very 
                                                                                  strong S&P rating of AA+. 
                                                                                  Investment credit risk is managed 
                                                                                  using the same processes as for 
                                                                                  credit default risk as noted 
                                                                                  above. 
                                                                                  We utilise robust agency and 
                                                                                  collection procedures to ensure that 
                                                                                  our credit and bad debt 
                                                                                  risk through our intermediaries and 
                                                                                  policyholders is minimised. 
                                                                                  The level of this risk increased 
                                                                                  during the year due to market 
                                                                                  developments but this was tightly 
                                                                                  monitored and controlled. 
                                                                                  Further information on this risk is 
                                                                                  given in note 4 to the full 
                                                                                  financial statements. 
--------------------------------------  --------------------------------------  -------------------------------------- 
 
  Operational Risks                       Accessing claims data in relation to    Over the last five years an 
  IT systems, data quality and            the risk offered is a key tool in       extensive programme has focused on 
  business intelligence risk              enabling sufficient                     accuracy, completeness and 
  The risk of shortfalls in the           and competitive pricing. Other          appropriateness of data and on the 
  quality or availability of              management information can enable a     development of a strategic data 
  management information for              quick response to claims                warehouse. 
  decision-making,                        or other market developments.           The level of this risk has remained 
  inadequate or unsupported systems       Efficient and reliable systems are      the same this year. 
  and system failure impacting on         paramount to delivering excellent 
  processing efficiency.                  customer service and 
                                          business processing. 
--------------------------------------  --------------------------------------  -------------------------------------- 
 
  Regulatory and legal risk               Regulatory and legal risk arises in     Legal and regulatory developments 
  Regulatory and legal risk is the        each territory in which we write        are monitored throughout the Group 
  risk of non-compliance with             business and this can                   and working parties are 
  applicable law and regulations,         result in significant cost and          established to consider significant 
  unenforceable contractual rights and    reputational implications if it is      developments which impact on our 
  any dispute resolution or other         not managed appropriately.              business.
Grafico Azioni Ecclesiastl.8fe (LSE:ELLA)
Storico
Da Dic 2024 a Gen 2025 Clicca qui per i Grafici di Ecclesiastl.8fe
Grafico Azioni Ecclesiastl.8fe (LSE:ELLA)
Storico
Da Gen 2024 a Gen 2025 Clicca qui per i Grafici di Ecclesiastl.8fe