"Direct Line's main underwriting subsidiary has been hit with a 10.6 million fine by the Bank of England's Prudential Regulation Authority (PRA) for wrongly calculating its financial strength over a two-year period. The PRA revealed that UK Insurance Limited (UKI) misstated its balance sheet during 2023 and 2024. This was attributed to "ineffective preventative and detective controls and resourcing issues" across its finance and actuarial operations."
"These significant errors went undetected "for a significant period of time", according to the regulator, leading UKI to overstate its balance sheet strength to both the PRA and the wider financial market. The penalty was initially set at 21.3 million but was reduced by half. This reduction was granted under the early account scheme, acknowledging Direct Line and UKI's prompt admission of the error and their swift actions to resolve the matter."
UK Insurance Limited, the main underwriting subsidiary of Direct Line, was fined 10.6 million by the Bank of England's Prudential Regulation Authority for incorrectly calculating its financial strength over a two-year period. The company misstated its balance sheet during 2023 and 2024 due to ineffective controls and resourcing issues in finance and actuarial operations. These errors remained undetected for an extended period, causing the company to overstate its balance sheet strength to regulators and the financial market. The original penalty of 21.3 million was reduced by half under an early account scheme, recognizing the company's prompt admission and swift corrective actions. This incident follows Direct Line's acquisition by Aviva for 3.7 billion.
Read at www.independent.co.uk
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