(Reuters) — The Bank of England said on Thursday it has fined insurer MS Amlin Underwriting Ltd. £9.695 million ($10.84 million) for failings in its governance, controls and risk management spanning five years.
The central bank’s regulatory arm, the Prudential Regulation Authority, said the deficiencies, which took place between September 2014 and December 2019, continued despite the watchdog sending a warning to Amlin and its peers in the sector in the first half of 2018.
The company organized its insurance business into three units, and the PRA said it had noted its concerns about the risks this and current market conditions entail.
“The penalty reflects the seriousness of MSAUL̵7;s failure to meet the expected standards in this case and should deter similar behavior from other companies,” Bank of England Deputy Governor Sam Woods said in a statement.
The PRA said Amlin agreed to settle the case and qualified for a 30% discount to avoid a higher fine of £13.85m.
Amlin said the fine drew a clear and final line under legacy issues that culminated in its negative financial performance in 2017.
“The new management team, established in 2020, has completed a comprehensive program of structural and strategic changes that have addressed these historical issues, and supported a return to profitable growth,” Amlin said in a statement.