XL Group reports good start to 2017
XL Group has received the full internal model (ICM) approval from the Bermuda Monetary Authority (BMA) to determine the company's and its subsidiary XL Bermuda's respective enhanced capital requirements (ECR) in substitution of the Bermuda Solvency Capital Requirement (BSCR) standard formula.
According to the statement, XL's 2017 ECR ratio using the ICM is 205 percent. The company’s 2017 ECR ratio prepared using the BSCR was 196 percent, as disclosed in the its Financial Condition Report for the year ended December 31, 2016.
Mike McGavick, chief executive officer, said: "We are pleased to receive approval of our full internal model in that it speaks to the fact that the model has been robustly researched and tested, and its assumptions and outputs have been challenged and validated.
"We have used internal models extensively over the last decade to manage capital allocation, risk budgeting, reinsurance purchasing and financial reporting. Our commitment to the approved model and the model approval process represents our dedication to continuous improvement and to leading edge analytics, high quality governance practices as well as our enterprise risk management culture and environment. We believe that our model represents a valuable asset which synthesizes insights from across our organization, improving the quality of our returns."
XL group, BMA, Bermuda monetary authority, Bermuda solvency capital requirement, BSCR, Mike mcGavick, Bermuda