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The Actuary The magazine of the Institute & Faculty of Actuaries
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More industry news

Government Actuary’s Department eighth “best place to work”
Government Actuary’s Department staff are smiling after coming highly placed in a “Best Places to Work in the Public Sector” contest. Coming eighth out of 207 entrants left Trevor Llanwarne, government actuary, “delighted with the recognition... for the way in which GAD looks after its people, something we all believe to be crucial to our success.” Congratulations!

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FSCS under pressure over bank bailouts
Hewitt has issued a warning of possible pressure on the Financial Services Compensation Scheme (FSCS) to bring in the cash it needs to meet the money it has paid out for the banks.

According to Hewitt’s Andrew Cheseldine, the FSCS is around £20bn in debt following the £14bn bailout of Bradford & Bingley when it moved assets to Santander. The FSCS is operated on a pay-as-yougo basis funded from five sources: life and pensions; investment; general insurance; deposit (including banks) and home finance. If the FSCS requests the money quickly, the banks would have to stump up to a limit of £1.8bn per annum — and the insurers and investment managers would have to stump up the rest of the £4bn per annum ceiling on what can be raised. Members of personal pensions and companies having undertaken a buyout or buy-in might have to pay, via a levy, for the banking crisis.

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Pru acquisition delayed
Prudential had to delay the launch of the prospectus for the rights issue for the fundraising for its takeover of AIG’s Asian operations. This came about as the FSA raised concerns about the adequacy of its capital position following this fundraising.

The acquisition is a huge one, worth around $35.5bn. At the time of going to press, Prudential has just announced a rights issue of $21bn to raise the extra capital required to see the deal go through.