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Halden reportsRisk

Halden report · Risk

What could go wrong, and where is the capital?

Mostly in insurance risk: it takes 74% of Halden's £330m ultimate SCR, across 79 risks in five classes.

CoVi · Risk taxonomyFictitious

Halden risks

Halden's risk taxonomy, built by Context Visualised: each risk class sized by its share of the ultimate SCR (uSCR). Figures at 30 September 2026.

79Risks
2High residual
132/158Controls operating
£330mUltimate SCR (uSCR)

Where the capital goes

uSCR £330m

Insurance 74%
Market 8%
Counterparty 9%
Operational 9%

SubclassSCRHighest residualRisks
SubclassSCRHighest residualRisks
SubclassSCRHighest residualRisks
SubclassSCRHighest residualRisks
SubclassSCRHighest residualRisks

Percentages are each area's diversified share of the ultimate SCR, using the Lloyd's Capital Return risk types: premium, catastrophe and reserve within insurance, then market, credit and operational. Strategic risk is not capitalised in the SCR. The pill shows the highest residual rating in each subclass.

Risk profile by class

Inherent
Residual
Average score out of 25

Average risk score by class
Class	Inherent	Residual	Controls
Insurance risk	12.1	7.9	79%
Market risk	7.1	5.4	100%
Counterparty risk	7.7	6.0	80%
Strategic risk	9.8	6.9	82%
Operational risk	10.5	6.6	83%

The gap between the two shapes is what our controls take off. Controls shows the share operating as designed.

Percentages are each area's diversified share of the uSCR, using the Lloyd's Capital Return risk types. Strategic risk is not capitalised, and each subclass carries a pill naming its highest rating after controls.

Source: risk register and Lloyd's Capital Return (uSCR) at 30 Sep 2026.

Residual heatmap

Likelihood 2 × impact 3

26Risks
51/52Controls operating
25/26KRIs on track

IR-01.1 Underwriting outside appetite or authority 2 of 2 controls operatingKRI: Referrals breaching authority per month6 · LowKRI on track
IR-01.6 Unintended policy coverage 2 of 2 controls operatingKRI: Wording exceptions approved6 · LowKRI on track
IR-02.2 Reserving data quality 2 of 2 controls operatingKRI: Bordereaux late or incomplete6 · LowKRI on track
IR-02.3 Climate litigation 2 of 2 controls operatingKRI: Climate-related claims notified6 · LowKRI on track
IR-03.4 Political violence accumulation 2 of 2 controls operatingKRI: PV&T aggregate by city6 · LowKRI on track
IR-04.2 Loss of coverholder agreements 2 of 2 controls operatingKRI: Binder premium up for renewal in 90 days6 · LowKRI on track
IR-05.2 Large single-risk exposure 2 of 2 controls operatingKRI: Lines above guideline size6 · LowKRI on track
MR-01.1 Rising interest rates reduce bond values 2 of 2 controls operatingKRI: Portfolio duration vs limit6 · LowKRI on track
MR-01.2 Asset-liability duration mismatch 2 of 2 controls operatingKRI: Duration gap6 · LowKRI on track
MR-03.1 Credit spread widening 2 of 2 controls operatingKRI: Average portfolio credit rating6 · LowKRI on track
MR-04.1 Currency mismatch losses 2 of 2 controls operatingKRI: Net open FX position6 · LowKRI on track
CR-01.4 Group reinsurer support withdrawn 2 of 2 controls operatingKRI: Group reinsurer capital ratio6 · LowKRI on track
CR-03.2 Fronting partner downgrade 1 of 2 controls operatingKRI: Fronting partner ratings6 · LowKRI watch
SR-01.2 Business plan deviation 2 of 2 controls operatingKRI: GWP variance vs plan by class6 · LowKRI on track
SR-04.1 Intra-group reinsurance not at arm's length 2 of 2 controls operatingKRI: Intra-group terms reviewed6 · LowKRI on track
SR-04.2 Conflicts between 9146 and 9147 2 of 2 controls operatingKRI: Conflicts logged and resolved6 · LowKRI on track
SR-06.2 Culture misaligned with conduct expectations 2 of 2 controls operatingKRI: Speak-up cases6 · LowKRI on track
OR-01.1 Prolonged system outage 2 of 2 controls operatingKRI: Impact tolerance breaches6 · LowKRI on track
OR-02.2 Third-party data breach 2 of 2 controls operatingKRI: Suppliers with overdue assessments6 · LowKRI on track
OR-03.1 Loss of key underwriters 2 of 2 controls operatingKRI: Regretted leavers6 · LowKRI on track
OR-04.1 Breach of PRA, FCA or Lloyd's requirements 2 of 2 controls operatingKRI: Open regulatory findings6 · LowKRI on track
OR-04.2 DFSA requirements not met in Dubai 2 of 2 controls operatingKRI: DFSA returns submitted late6 · LowKRI on track
OR-04.5 Lloyd's and Solvency II reporting errors 2 of 2 controls operatingKRI: Returns resubmitted6 · LowKRI on track
OR-05.3 Claims leakage 2 of 2 controls operatingKRI: Leakage found in file reviews6 · LowKRI on track
OR-06.5 Critical outsourced service failure 2 of 2 controls operatingKRI: Material outsourcer SLA breaches6 · LowKRI on track
OR-09.1 Poor customer outcomes 2 of 2 controls operatingKRI: Complaints upheld6 · LowKRI on track

Filled dots are controls operating as designed. Residual score is likelihood × impact after controls.

Inherent heatmap

Likelihood 3 × impact 3

21Risks
35/42Controls operating
14/21KRIs on track

IR-01.6 Unintended policy coverage 2 of 2 controls operatingKRI: Wording exceptions approved6 · LowKRI on track
IR-02.2 Reserving data quality 2 of 2 controls operatingKRI: Bordereaux late or incomplete6 · LowKRI on track
IR-04.2 Loss of coverholder agreements 2 of 2 controls operatingKRI: Binder premium up for renewal in 90 days6 · LowKRI on track
MR-01.1 Rising interest rates reduce bond values 2 of 2 controls operatingKRI: Portfolio duration vs limit6 · LowKRI on track
MR-01.2 Asset-liability duration mismatch 2 of 2 controls operatingKRI: Duration gap6 · LowKRI on track
MR-03.1 Credit spread widening 2 of 2 controls operatingKRI: Average portfolio credit rating6 · LowKRI on track
MR-04.1 Currency mismatch losses 2 of 2 controls operatingKRI: Net open FX position6 · LowKRI on track
CR-01.3 Reinsurance cost and availability 1 of 2 controls operatingKRI: Reinsurance spend as % of GWP9 · MediumKRI watch
CR-02.1 Broker concentration 2 of 2 controls operatingKRI: Share of GWP from top three brokers6 · LowKRI on track
CR-02.3 Premium credit control failure 1 of 2 controls operatingKRI: Premium debt over 90 days6 · LowKRI watch
SR-01.3 Dubai platform underdelivers 1 of 2 controls operatingKRI: Dubai GWP and loss ratio vs plan9 · MediumKRI watch
SR-05.1 New capital and MGAs compress margins 1 of 2 controls operatingKRI: Lead share on key accounts9 · MediumKRI watch
OR-03.2 Insufficient resource for growth 1 of 2 controls operatingKRI: Vacancy rate in key teams9 · MediumKRI watch
OR-04.2 DFSA requirements not met in Dubai 2 of 2 controls operatingKRI: DFSA returns submitted late6 · LowKRI on track
OR-04.4 Premium tax non-compliance 2 of 2 controls operatingKRI: Tax payments late or adjusted4 · LowKRI on track
OR-04.5 Lloyd's and Solvency II reporting errors 2 of 2 controls operatingKRI: Returns resubmitted6 · LowKRI on track
OR-05.3 Claims leakage 2 of 2 controls operatingKRI: Leakage found in file reviews6 · LowKRI on track
OR-05.4 Inaccurate risk and board MI 2 of 2 controls operatingKRI: MI errors identified4 · LowKRI on track
OR-06.3 Weak coverholder oversight 1 of 2 controls operatingKRI: Coverholder audits overdue9 · MediumKRI watch
OR-08.2 Uncontrolled AI in underwriting and claims 1 of 2 controls operatingKRI: Unregistered AI tools found9 · MediumKRI watch
OR-09.1 Poor customer outcomes 2 of 2 controls operatingKRI: Complaints upheld6 · LowKRI on track

Filled dots are controls operating as designed. Residual score is likelihood × impact after controls.

Inherent heatmap

Likelihood 3 × impact 4

19Risks
32/38Controls operating
13/19KRIs on track

IR-01.1 Underwriting outside appetite or authority 2 of 2 controls operatingKRI: Referrals breaching authority per month6 · LowKRI on track
IR-01.2 Inadequate pricing 2 of 2 controls operatingKRI: Rate change vs plan assumption8 · MediumKRI on track
IR-03.4 Political violence accumulation 2 of 2 controls operatingKRI: PV&T aggregate by city6 · LowKRI on track
IR-05.1 Concentration in Gulf energy 1 of 2 controls operatingKRI: Top-10 Gulf energy aggregates9 · MediumKRI watch
IR-05.2 Large single-risk exposure 2 of 2 controls operatingKRI: Lines above guideline size6 · LowKRI on track
SR-01.1 Failure to deliver the 2027 growth plan 1 of 2 controls operatingKRI: Strategic milestones on track9 · MediumKRI watch
SR-01.2 Business plan deviation 2 of 2 controls operatingKRI: GWP variance vs plan by class6 · LowKRI on track
SR-01.4 Plan profit not achieved 1 of 2 controls operatingKRI: Forecast profit vs plan9 · MediumKRI watch
SR-02.1 Policy system replacement fails 1 of 2 controls operatingKRI: Milestones slipped9 · MediumKRI watch
SR-02.2 Growth outpaces infrastructure 1 of 2 controls operatingKRI: Headcount vs volume growth9 · MediumKRI watch
SR-03.2 Loss of third-party capital on 9147 2 of 2 controls operatingKRI: Capital commitments for next year8 · MediumKRI on track
SR-03.3 Internal model misstates capital 2 of 2 controls operatingKRI: Open validation findings8 · MediumKRI on track
SR-04.2 Conflicts between 9146 and 9147 2 of 2 controls operatingKRI: Conflicts logged and resolved6 · LowKRI on track
OR-01.1 Prolonged system outage 2 of 2 controls operatingKRI: Impact tolerance breaches6 · LowKRI on track
OR-02.2 Third-party data breach 2 of 2 controls operatingKRI: Suppliers with overdue assessments6 · LowKRI on track
OR-03.1 Loss of key underwriters 2 of 2 controls operatingKRI: Regretted leavers6 · LowKRI on track
OR-04.1 Breach of PRA, FCA or Lloyd's requirements 2 of 2 controls operatingKRI: Open regulatory findings6 · LowKRI on track
OR-06.4 Fronting arrangement breakdown 1 of 2 controls operatingKRI: Fronting SLA breaches8 · MediumKRI watch
OR-06.5 Critical outsourced service failure 2 of 2 controls operatingKRI: Material outsourcer SLA breaches6 · LowKRI on track

Filled dots are controls operating as designed. Residual score is likelihood × impact after controls.

What it tells us

What it tells us this quarter

9%
Operational risk is 9% of the uSCR, £30m, yet it holds both of Halden's high residual risks.
74%
Within the 74% insurance share, premium risk is 26%, catastrophe 24% and reserve risk 22%.
17 of 79
Strategic risk holds 17 of the 79 risks and no capital; ORSA scenarios cover it instead.

What we did

What we did about it

Actions on the two high risks, from Halden's action log.

ACT-038
Remediate Ridgeway Underwriting breaches (INC-031)
Owner
Head of Delegated Authority
Policy (approved by)
Delegated authority · Underwriting committee
Due
31 Oct 2026
ACT-029
Agree claims service levels with the UAE fronting partner (INC-028)
Owner
Head of Claims
Policy (approved by)
Claims management · Underwriting committee
Due
31 Oct 2026

Actions are listed under the policy they sit in. The action log does not record a deciding committee.

Sources

Where the numbers come from

The capital split follows the risk types of the Lloyd's Capital Return (LCR). The LCR reports a syndicate's SCR by risk type, as set out in Lloyd's Capital Guidance (April 2026).

Board datarisk register and Lloyd's Capital Return (uSCR) at 30 Sep 2026

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Halden is fictitious. Its numbers are illustrative.