L&G’s counterparty risk charge almost doubles in two years
Operational and market risk charges also climb at UK group
The counterparty default risk component of UK insurer Legal & General’s solvency capital requirement (SCR) hit £332 million ($420 million) in 2018, up 65% on 2017 and 95% on 2016.
Despite the surge, however, this charge is dwarfed by the market risk SCR, which stood at £7.3 billion in 2018. Market risk made up 47% of the firm’s overall consolidated SCR before taking diversification benefits and
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