SS5/24 – Funded reinsurance

Supervisory statement 5/24

First published 26 July 2024

This supervisory statement (SS) sets out the PRA’s expectations in respect of insurers entering into or holding funded reinsurance arrangements as cedants.

It covers the PRA’s expectations in the following areas:

  • the ongoing risk management of funded reinsurance arrangements;
  • the modelling of the solvency capital requirement associated with funded reinsurance arrangements; and
  • how firms should consider the structuring of funded reinsurance arrangements.

This SS is relevant to UK Solvency II firms and insurance and reinsurance undertakings that have a UK branch (third-country branch undertakings) when they hold, or are intending to enter, funded reinsurance arrangements.

Current version

Published on 23 October 2025. Effective from 27 October 2025.

 - following PS17/25 – Matching Adjustment Investment Accelerator

Past versions

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