Halden reportsOverview
Halden report · OverviewAre we within appetite?
Not fully: at 30 September 2026, Halden has 3 of its 20 key risk indicators outside appetite and 7 approaching the limit.
CoVi · Risk appetiteFictitious
Are we within appetite?
Halden's risk appetite board, built by Context Visualised: nine appetite statements, each measured by key risk indicators (KRIs). Figures at 30 September 2026.
- 10Within appetite
- 7Approaching limit
- 3Outside appetite
- Where we are now
- Last quarter
- Solvency coverage ratioHigher is better · ▲ from 145%152%Within
Related risks
- SR-03.1Insufficient capital for the plan8 · Medium
- SR-03.3Internal model misstates capital8 · Medium
Coverage after 1-in-10 year lossHigher is better · ▼ from 131%128%ApproachingRelated risks
- SR-03.1Insufficient capital for the plan8 · Medium
- IR-03.1Natural catastrophe accumulation8 · Medium
- GWP against planTarget band · ▲ from 3%6%Approaching
Related risks
- SR-01.2Business plan deviation6 · Low
- SR-01.1Failure to deliver the 2027 growth plan9 · Medium
Risk-adjusted rate changeHigher is better · ▼ from −0.8%−1.5%ApproachingRelated risks
- IR-01.2Inadequate pricing8 · Medium
- IR-01.5Softening market cycle9 · Medium
Large loss ratio to dateLower is better · ▲ from 16.4%18.1%OutsideRelated risks
- IR-01.3Social inflation in US casualty12 · Medium
- IR-01.4Adverse selection in growth classes9 · Medium
- IR-05.2Large single-risk exposure6 · Low
- 1-in-200 net cat loss / capitalLower is better · ▲ from 23%24%Within
Related risks
- IR-03.1Natural catastrophe accumulation8 · Medium
- IR-03.2Systemic cyber accumulation12 · Medium
- IR-03.3Climate-driven loss frequency and severity9 · Medium
US windstorm gross RDS against limitLower is better · ▲ from 79%82%WithinRelated risks
- IR-03.1Natural catastrophe accumulation8 · Medium
- Casualty actual vs expected claimsTarget band · ▲ from 4%7%Approaching
Related risks
- IR-02.1Long-tail casualty reserve inadequacy12 · Medium
- IR-02.2Reserving data quality6 · Low
- Overall duration gapTarget band · ▲ from −0.3 yrs−0.25 yrsWithin
Related risks
- MR-01.2Asset-liability duration mismatch6 · Low
AED duration gapTarget band · ▼ from −0.3 yrs−0.4 yrsWithinRelated risks
- MR-04.2AED peg risk3 · Low
- MR-01.2Asset-liability duration mismatch6 · Low
Sub-investment grade assetsLower is better · ▲ from 0%1.6%WithinRelated risks
- MR-03.1Credit spread widening6 · Low
- Recoverables from reinsurers below A-Lower is better · ▼ from 3.4%3%Within
Related risks
- CR-01.1Reinsurer default4 · Low
Premium debt over 90 daysLower is better · ▲ from 3.6% of GWP4.2% of GWPApproachingRelated risks
- CR-02.3Premium credit control failure6 · Low
- CR-02.2Coverholder and broker credit4 · Low
- Key controls fully effectiveHigher is better · ▼ from 87%84%Approaching
Related risks
- OR-06.2Fronting partner claims handling failure16 · High
- OR-06.3Weak coverholder oversight9 · Medium
Out-of-authority bindingLower is better · ▲ from 923OutsideRelated risks
- OR-06.1Coverholder binding outside authority16 · High
- OR-06.3Weak coverholder oversight9 · Medium
Critical vulnerabilities unpatched over 30 daysLower is better · ▼ from 21WithinRelated risks
- OR-02.1Ransomware attack8 · Medium
- Sanctions alerts open over 5 daysLower is better · ▼ from 10Within
Related risks
- OR-07.1Sanctions breach8 · Medium
Wording exceptions not approvedLower is better · ▲ from 24OutsideRelated risks
- IR-01.6Unintended policy coverage6 · Low
- OR-09.2Products not delivering fair value4 · Low
Complaints upheldLower is better · ▼ from 24%22%ApproachingRelated risks
- OR-09.1Poor customer outcomes6 · Low
- Liquid assets / 1-in-200 cash needHigher is better · ▲ from 178%185%Within
Related risks
- MR-05.1Liquidity squeeze after a major loss8 · Medium
- MR-05.2Trapped cash in Dubai4 · Low
Numbers under each slider are the thresholds. Single-sided sliders have one bad end; target bands, such as duration gap or premium against plan, go amber then red in both directions.
The node structure
AppetiteKRIRiskProcessControlCommittee
Each appetite is measured by KRIs. Each KRI watches risks in the register. Each risk arises at stops on the process maps, where controls sit and committees review them. The links are many to many, so one weak process can push several appetites out of line.
KRIs
- K1Solvency coverage ratio152%
- K2Coverage after 1-in-10 year loss128%
Risks
- SR-03.1Insufficient capital for the plan
- SR-03.3Internal model misstates capital
- IR-03.1Natural catastrophe accumulation
Processes
- Back office · Actuarial & capital › Capital model
- Front office · Underwriting › Pricing
- Front office · Outwards reinsurance › Placement
KRIs
- K1GWP against plan6%
- K2Risk-adjusted rate change−1.5%
- K3Large loss ratio to date18.1%
Risks
- SR-01.2Business plan deviation
- SR-01.1Failure to deliver the 2027 growth plan
- IR-01.2Inadequate pricing
- IR-01.5Softening market cycle
- IR-01.3Social inflation in US casualty
- IR-01.4Adverse selection in growth classes
- IR-05.2Large single-risk exposure
Processes
- Back office · Finance & FP&A › Business planning
- Front office · Underwriting › Pricing
- Front office · Claims › Reserving
- Front office · Underwriting › Triage
- Front office · Underwriting › Peer review
- Front office · Outwards reinsurance › Placement
KRIs
- K11-in-200 net cat loss / capital24%
- K2US windstorm gross RDS against limit82%
Risks
- IR-03.1Natural catastrophe accumulation
- IR-03.2Systemic cyber accumulation
- IR-03.3Climate-driven loss frequency and severity
Processes
- Front office · Underwriting › Pricing
- Front office · Outwards reinsurance › Placement
KRIs
- K1Casualty actual vs expected claims7%
Risks
- IR-02.1Long-tail casualty reserve inadequacy
- IR-02.2Reserving data quality
Processes
- Front office · Claims › Reserving
- Front office · Policy servicing › Bordereaux
KRIs
- K1Overall duration gap−0.25 yrs
- K2AED duration gap−0.4 yrs
- K3Sub-investment grade assets1.6%
Risks
- MR-01.2Asset-liability duration mismatch
- MR-04.2AED peg risk
- MR-03.1Credit spread widening
Processes
- Back office · Investments & treasury › Investment strategy & ALM
- Back office · Investments & treasury › Cash & liquidity
- Back office · Investments & treasury › Investment monitoring
KRIs
- K1Recoverables from reinsurers below A-3%
- K2Premium debt over 90 days4.2% of GWP
Risks
- CR-01.1Reinsurer default
- CR-02.3Premium credit control failure
- CR-02.2Coverholder and broker credit
Processes
- Front office · Outwards reinsurance › Placement
- Back office · Finance & FP&A › Credit control
- Front office · Distribution › DA oversight
KRIs
- K1Key controls fully effective84%
- K2Out-of-authority binding23
- K3Critical vulnerabilities unpatched over 30 days1
Risks
- OR-06.2Fronting partner claims handling failure
- OR-06.3Weak coverholder oversight
- OR-06.1Coverholder binding outside authority
- OR-02.1Ransomware attack
Processes
- Front office · Claims › Reserving
- Front office · Distribution › DA oversight
- Back office · IT & data › Cyber security
KRIs
- K1Sanctions alerts open over 5 days0
- K2Wording exceptions not approved4
- K3Complaints upheld22%
Risks
- OR-07.1Sanctions breach
- IR-01.6Unintended policy coverage
- OR-09.2Products not delivering fair value
- OR-09.1Poor customer outcomes
Processes
- Back office · Compliance › Sanctions screening
- Front office · Distribution › DA oversight
- Front office · Underwriting › Bind & issue
- Back office · Compliance › Conduct & complaints
- Front office · Claims › Settlement
KRIs
- K1Liquid assets / 1-in-200 cash need185%
Risks
- MR-05.1Liquidity squeeze after a major loss
- MR-05.2Trapped cash in Dubai
Processes
- Back office · Investments & treasury › Cash & liquidity
Process hotspots across all appetites
- PricingFront office · Underwriting · feeds Capital, Catastrophe, Underwriting1 outside3 approaching
- DA oversightFront office · Distribution · feeds Conduct & compliance, Counterparty, Operational1 outside2 approaching
- ReservingFront office · Claims · feeds Operational, Reserving, Underwriting1 outside2 approaching
- Conduct & complaintsBack office · Compliance · feeds Conduct & compliance1 outside1 approaching
- PlacementFront office · Outwards reinsurance · feeds Capital, Catastrophe, Counterparty, Underwriting1 outside1 approaching
- Bind & issueFront office · Underwriting · feeds Conduct & compliance1 outside
Counts are KRIs outside or approaching appetite that trace back to each process stop. These are the places to send control testing and internal audit first.
The pointer marks where each KRI is now, and the faint dot where it was last quarter.
Source: risk appetite statement and KRIs at 30 Sep 2026, risk register, process maps.
What it tells us
What it tells us this quarter
- 18.1%
The large loss ratio is 18.1% to date, past its 18% limit and against a 14.4% plan for the year.
- 23
Bordereaux checks flagged 23 out-of-authority risks, against a limit of 15.
- 4
Halden has 4 wording exceptions waiting for approval, against a limit of 2.
What we did
What we did about it
Actions on two of the three reds, from Halden's action log.
- ACT-041
Reprice US trucking accounts at renewal
- Owner
- Chief Underwriting Officer
- Policy (approved by)
- Underwriting · Board
- Due
- 30 Nov 2026
- ACT-047
Approve or remove 4 unapproved wording exceptions
- Owner
- Head of Product
- Policy (approved by)
- Underwriting · Board
- Due
- 15 Oct 2026
Actions are listed under the policy they sit in. The action log does not record a deciding committee.
No action in the log targets the out-of-authority finding itself. The data shows the check that found the 23: bordereaux validation (C-138), rated partially effective, with its test overdue.
Sources
Where the numbers come from
Thresholds come from the board-approved appetite statements. Each KRI reads from its own record: large claims, coverholder bordereaux, asset data or the catastrophe model returns.
- Board datarisk appetite statement and KRIs at 30 Sep 2026, risk register, process maps
Follow the data
Related reports
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Halden is fictitious. Its numbers are illustrative.