Capital management methodology, November 2017
17 November 2017
Providing members with first-class financial security is one of The Standard Club’s four strategic objectives. This includes holding free reserves large enough to cushion members from paying extra calls to cover shock claims or losses.
But in setting the level for its free reserves, the club must also consider its regulatory and rating requirements.
This bulletin explains how the club works out the appropriate level of its free reserves, enabling it to:
- minimise the risk of making extra calls
- continue to benefit from its ‘A’ rating from Standard & Poor’s
- comply with financial regulations
- ensure its free reserves are no higher than needed to meet these objectives.
Use the link on the right to read this bulletin.