Capital management in UK insurance focuses on optimising the quantity and quality of capital under Solvency II, ensuring that firms maintain sufficient buffers while still delivering attractive returns to shareholders and supporting growth. Finance, actuarial, and risk teams work together on capital planning, reinsurance optimisation, investment strategy, and potential capital actions, using tools such as internal models, stress testing, and risk‑adjusted performance metrics to inform decisions and satisfy both regulatory and rating‑agency stakeholders.
