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Home > Prudential Regulation Authority > Capital extractions by run-off firms within the general insurance sector – SS4/14 UPDATED
 

Capital extractions by run-off firms within the general insurance sector – SS4/14 UPDATED

25 April 2014
28 July 2016 – Content on this page has been updated see:
 
 
For information only, the publication issued on 25 April 2014 is available below.
 
Background 
 
This supervisory statement provides additional clarification of the Prudential Regulation Authority’s (PRA) expectations of firms in respect of existing prudential provisions within the PRA Handbook for run-off firms in the general insurance sector. Its purpose is to explain the PRA’s expectations that:
 
  • firms in run-off hold sufficient regulatory capital to continue to meet their obligations to policyholders as they fall due, and
 
  • firms satisfy themselves and the PRA that this remains the case after a proposed capital extraction.
 
It is aimed at general insurance firms in run-off and highlights some factors that the PRA expects the senior management of a run-off firm to take into account when considering making a request to the PRA to extract capital from the firm during the course of a run-off. It also explains the approach that the PRA intends to take when considering such requests.
 
The PRA’s consultation on a draft of this supervisory statement ended on 26 October 2013.
 
The PRA’s feedback on responses to the consultation have been incorporated into the statement.
 
Supervisory Statement
 
 
Consultation Paper
 
 
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