Prudential Regulation Authority Rulebook

1.1

This supervisory statement (SS) is addressed to all UK Solvency II firms and to the Society of Lloyd’s and its managing agents (collectively called ‘firms’ in this SS). It sets out the Prudential Regulation Authority’s (PRA) expectations of firms with respect to general issues regarding reinsurance and the management of reinsurance counterparty credit risk.

1.2

This statement should be read in conjunction with the PRA’s rules in the Solvency II Sector of the PRA Rulebook, and the PRA’s insurance approach document.^[1]

1.3

This SS expands on the PRA’s general approach as set out in its insurance approach document. By clearly and consistently explaining its expectations of firms in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders.