Rothesay's total investment return falls from £4.6bn to £48m

Written by Adam Cadle

26/04/2022

Rothesay has seen its total investment return fall from £4.6bn in 2020 to £48m in 2021.

Unrealised gains of £2.7bn were recorded within its investment portfolio in 2020, compared to to £1.6bn losses last year, according to the group's solvency and financial condition report (SFCR).

Interest income, remained at £1.4bn, while crystallised gains more than halved from £560m to £237m, in the same period. Interest income has increased due to the growth in assets under management. The losses on financial investments were largely driven by the increase in long-term interest rates over the year.

Total financial assets fell from £93.7bn to £83.8bn between 2020 and 2021.

Despite the continuing impact of COVID-19 on financial markets, Rothesay's solvency and liquidity position has "remained strong" throughout the year, the firm said. Regular stress testing and live monitoring of the financial and solvency position of Rothesay has allowed the firm to respond as the market evolved. During 2021, Rothesay successfully raised c.£740m of new capital through the issuance of Restricted Tier 1 (RT1) bonds, ensuring that it ended the year with a Group SCR coverage of 226% (2020: 201%) and a RLP SCR coverage of 229% (2020: 203%).

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