PRA

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Amid three regulatory consultations for the legacy market and the threat of s166 reviews for certain Part VII transfers, the legacy market is reaching a turning point.

PRA director Gareth Truran has outlined the dangers of cutting capital requirements for certain assets for insurers, in a speech on specific Solvency II reforms.

The regulator said firms should undertake a “holistic assessment” of the associated financial risks involved with trade credit finance.

The PRA has proposed that where non-life legacy transfer deals involve a carrier in run-off, the acquirer may have to go through a Section 166 review under certain circumstances.

The regulator has set out timelines and the high-level scope for its 2022 stress-testing exercise with insurers.

The regulator has launched its Quantitative Impact Study, which will gather data for potential changes to balance-sheet requirements under Solvency II.

The PRA’s executive director for insurance has outlined the scope of a market study and consultation that will ultimately reform and simplify the Solvency II regime.

The UK regulator is planning to review the impact of M&A on financial resilience.

The CEO seeks to check the life sector’s hopes of a significant lowering of capital requirements.