Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm;
2. (2) the Society, in accordance with General Application 3;
3. (3) managing agents, in accordance with General Application 3; and
4. (4) (in respect of 3.8 only) a UK ISPV.

1.2

In this Part, the following definitions shall apply:

admissible insurance and reinsurance obligations

means insurance or reinsurance obligations that meet all of the following requirements:

1. (1) the contracts that give rise to the insurance or reinsurance obligations are concluded before 1 January 2016;
2. (2) the technical provisions for the insurance and reinsurance obligations are determined in accordance with INSPRU 1.1.16 R of the PRA Handbook as at 31 December 2015; and
3. (3) the insurance or reinsurance obligations are not subject to a matching adjustment permission.

For the purposes of paragraph (1), the renewal of a contract does not give rise to a new contract.

[Note: Art. 308c(3) of the Solvency II Directive]

capital resources gearing rules

has the meaning set out in in the PRA Handbook Glossary as at 31 December 2015.

core tier one capital

means an item of capital that is stated in stage A (Core tier one capital) of the capital resources table at GENPRU 2 Annex 1 of the PRA Handbook as at 31 December 2015 to be core tier one capital.

directive reorganisation measures

has the same meaning as in the Insurers (Reorganisation & Winding Up) Regulations 2004 (2004/353).

innovative tier one capital

means an item of capital that is stated in GENPRU 2.2 of the PRA Handbook as at 31 December 2015 to be innovative tier one capital.

lower tier two capital

means an item of capital that is stated in stage H (Lower tier two capital) of the capital resources table at GENPRU 2 Annex 1 of the PRA Handbook as at 31 December 2015 to be lower tier two capital.

perpetual non-cumulative preference share

means an item of capital that is stated in stage B (Perpetual non-cumulative preference shares) of the capital resources table at GENPRU 2 Annex 1 of the PRA Handbook as at 31 December 2015 to be perpetual non-cumulative preference shares.

pre-Solvency II GCRR

means the requirement to maintain group capital resources that applied to a UK Solvency II firm under PRA rules as at 31 December 2015.

Solvency II rules

means the PRA rules in the Valuation, Technical Provisions, Own Funds, Solvency Capital Requirement – General Provisions, Solvency Capital Requirement – Standard Formula, Solvency Capital Requirement – Internal Models, Minimum Capital Requirement, Undertakings in Difficulty, Investments, Composites, Conditions Governing Business, Insurance Special Purpose Vehicles, Group Supervision, Reporting, Surplus Funds, With-Profits, Insurance - Certification, Insurance – Conduct Standards, Insurance – Senior Management Functions, Insurance – Allocation of Responsibilities and Insurance – Fitness and Propriety Parts of the PRA Rulebook.

upper tier two capital

means an item of capital that is stated in stage G (Upper tier two capital) of the capital resources table at GENPRU 2 Annex 1 of the PRA Handbook as at 31 December 2015 to be upper tier two capital