General Insurance Article - PRA consultation paper on Solvency II


Solvency II: consistency of UK generally accepted accounting principles with the Solvency II Directive - CP16/15

 Summary
 This consultation paper seeks feedback on a draft supervisory statement which sets out the PRA’s expectations of firms which are considering applying the derogation within Article 9 (4) of the Commission Delegated Regulation (EU) 2015/35 (‘the Solvency II Regulation’). This derogation permits a firm to value some assets and liabilities using local generally accepted accounting principles (GAAP) if they fulfil some very specific criteria listed in that Article.
  
 The draft statement is relevant for firms within the scope of Solvency II for which annual financial statements and consolidated financial statements (if any) are prepared under UK generally accepted accounting principles.
 Background
  
 The Solvency II Regulation contains a derogation for firms within the scope of Solvency II for which annual financial statements and consolidated financial statements (if any) are prepared under UK GAAP. This allows them the option of recognizing and valuing assets and liabilities under UK GAAP for Solvency II purposes if:
  
 UK GAAP is consistent with Article 75 of the Solvency II Directive;
 the valuation method is proportionate to the nature, scale, and complexity inherent in the business of the undertaking; and
 the process of valuing the assets and liabilities using international accounting standards would impose costs which are disproportionate with respect to the total administrative expenses of the firm.
 
 The statement expands on the PRA’s general approach as set out in its Insurance Approach document.
  
 Consultation Paper download below
  
 
  

Back to Index


Similar News to this Story

Call for simplification of EU cybersecurity regulation
Insurance Europe has welcomed the European Commission’s review of the Cybersecurity Act (CSA) and the forthcoming digital omnibus initiative, supporti
7 California wildfire lessons learnt for European insurers
The devastating January 2025 wildfires in Los Angeles, which destroyed over 16 000 structures and caused insured losses of approximately USD 40 billio
Do not be left high and dry this summer
Aviva is urging caution as data reveals a correlation between warm weather and fire claims. Number of garden fire claims is already significantly high

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.