United Kingdom: Insurance

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Article
Funded Reinsurance: The PRA’s Proposed Changes To Capital Treatment – The Final Landing Place?
The Prudential Regulation Authority has proposed significant changes to the regulatory treatment of funded reinsurance that would require UK insurers to hold substantially more capital for these transactions. The consultation paper CP8/26 introduces amendments to the Counterparty Default Adjustment that could increase capital requirements from 2-4% to around 10% of underlying annuity liabilities.
United Kingdom Insurance
MB
Mayer Brown
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Article
PRA Proposes Funded Reinsurance Reform
The UK's Prudential Regulation Authority has proposed fundamental reforms to the regulatory capital treatment of funded reinsurance transactions under Solvency UK, potentially doubling or tripling capital requirements for insurers. These changes could reshape the competitive landscape of the UK life insurance market, favoring larger reinsurers with strong credit ratings while creating new barriers to entry for smaller players.
United Kingdom Insurance
SA
Skadden Arps Slate Meagher & Flom
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