The Prudential Regulation Authority (PRA) has published its consultation, CP7/13, on the PRA’s approach when reviewing proposals for capital extractions by general insurers in run-off. It is intended that the material in this consultation paper will be adopted by the PRA as a Supervisory Statement.
The material expands on the PRA’s general approach as set out in its Approach Document, and is designed to help ensure the PRA meets its statutory objectives in its supervision of insurers.
It clarifies the PRA’s expectations of general insurers in run-off when making a proposal to extract capital in the context of the PRA’s insurance objective of policyholder protection. Specifically, the PRA seeks to ensure that general insurers in run-off maintain at all times an adequate level of capital, taking into account the risks to which they are exposed, and consistent with the safety and soundness, and protection, of policyholders.
This consultation closed on 26 October 2013.
Consultation Paper 7/13The Supervisory Statement relating to this Consultation Paper was issued on 25 April 2014.