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Solvency II: Group supervision

Supervisory Statement 9/15

Update 14 March 2019

The SS was amended in Chapter 5A following Policy Statement 9/19 ‘Solvency II – Group own fund availability’ to clarify that in assessing group own funds availability, the solo Solvency Capital Requirement should no longer be presumed to be a barrier to availability. The SS clarifies that the PRA expects such availability analysis to be provided only where a group insurer is based in a jurisdiction that is not subject to a regime that is similar to, and not built on the same principles in relation to capital requirements and quality of capital at solo level as, the UK solvency regime.

This SS was also updated to simplify the formatting and aid readability, including sequential numbering of footnotes, the updating of hyperlinks to reflect the location on the Bank of England’s website, and to make hyperlinks more easily identifiable.

Current version

Published: 14 March 2019

Supervisory Statement 9/15 - March 2019 (PDF)
Updated following Policy Statement 9/19 'Solvency II: Group own fund availability'.
Effective from: 12 July 2018

Past versions

Published: 12 July 2018

Supervisory Statement 9/15 - July 2018 (PDF)
Updated following Policy Statement 17/18 'Solvency II:Group supervision'.
Effective from: 12 July 2018

Published: 20 March 2015

Supervisory Statement 9/15 (PDF)
Published following Policy Statement 2/15 'Solvency II: A new regime for insurers'
Effective from: 1 January 2016 (superseded on 12 July 2018 by July 2018 version)

Update 12 July 2018

SS9/15 was updated following publication of Policy Statement 17/18 ‘Solvency II: Group supervision’. Please note, the PRA has also published CP15/18 ‘Solvency II: Group own fund availability’ which sets out the PRA’s proposals to further amend SS9/15 for its expectations for assessments of the availability of own funds to cover the group solvency capital requirement.

This supervisory statement sets out the Prudential Regulation Authority’s (PRA’s) expectations in respect of the Solvency II groups provisions. The statement is addressed to UK Solvency II firms that are part of a group (and the Society of Lloyd’s as a mixed activity insurance holding company), and should be read alongside all relevant European legislation, the Group Supervision Part of the PRA Rulebook and the high-level expectations outlined in the PRA’s approach to insurance supervision.

SS9/15 explains requirements regarding the following topics:
- entities excluded from the scope of group supervision;
- choice of calculation method;
- group capital add-on;
- centralised risk management;
- single own risk and solvency assessment report;
- single solvency and financial condition report;
- responsibilities of the relevant insurance group undertaking; and
- supervision in the absence of third-country equivalence.