Brexit Update
Please note that this communication is not the latest update from Utmost regarding Brexit. Please use the search function on our News page to find more recent updates.
The United Kingdom (the ‘UK’) left the European Union (the ‘EU’) on 31 January 2020 with a withdrawal agreement. In the final week prior to the end of the transition period (ending 31 December 2020) a trade deal was then negotiated between the UK and the EU. However, at the time of writing this deal doesn’t extend to, or assist, the cross-border Financial Services sector. Nevertheless, we understand there will be ongoing discussions between the UK and the EU in this area, with a commitment to work towards a “memorandum of understanding” on regulatory co-operation by March 2021.
Irrespective of these ongoing discussions, we are pleased to reassure our business partners that Utmost PanEurope dac can continue to service existing UK resident policyholders as normal. In relation to new business, we are also pleased to confirm that we have measures in place to ensure that we can continue to accept new business from UK residents following the UK’s departure from the EU.
As a result of the UK’s departure from the EU policyholders of Utmost PanEurope will no longer be covered by the UK Financial Services Compensation Scheme (FSCS). Whilst policyholders will no longer be able to claim under the FSCS we would remind you of the strong regulatory environment that exists in Ireland, which is designed to protect policyholders. The Irish rules implementing Solvency II provide robust protection for policyholders and beneficiaries of a life insurance company as their claims take absolute priority over any other claims of the life insurance company with respect to assets representing technical reserves. The Central Bank of Ireland (CBI) regulates the activities of Utmost PanEurope dac and takes a rigorous approach to prudential supervision. The CBI has continuous oversight over the governance, risk management and controls of Utmost PanEurope dac through reviews and inspections. The CBI also puts in place approval processes for key individuals making sure they have the necessary skills to perform key functions.
We would draw attention to the fact that in July 2020 Fitch Ratings, one of the top global rating agencies, awarded the companies operating under the Utmost Wealth Solutions brand (which includes Utmost Pan Europe dac) with Insurer Financial Strength (IFS) ratings of ‘A’ (Strong) with stable outlooks. Fitch’s assessment included a post-Covid stress test. The affirmation reflects the strong capitalisation and solvency of Utmost PanEurope dac as well as its stable leverage ratio.
The Isle of Man has signed an agreement with the UK that preserves free trade between the UK and the British Crown Dependencies and thus the position in respect of existing and new Utmost Limited policies will remain unaltered.
We will keep our website updated as additional information becomes available.
This statement was last updated on 11 January 2021.