Prudential Regulation Authority Rulebook

SS4/14 was first published in April 2014 following CP7/13 ‘Capital extractions by run-off firms within the general insurance sector’ September 2013.¹

This appendix details changes made to this SS following its initial publication in April 2014.

2016

On 28 July 2016 SS4/14 was updated to reflect the proposals consulted on in Consultation Paper 42/15 ‘Capital extractions by run-off firms within the general insurance sector’², following the change in the UK insurance regulatory regime from Individual Capital Adequacy Standards (ICAS) to Solvency II. The SS has been updated to set out the PRA’s expectations regarding the factors that senior management of general insurance firms in run-off should take into account when considering making a request to the PRA to extract capital from the firm during the course of a run-off. This statement has also been amended to reflect the revised approach the PRA takes when considering such requests. Specifically:

• paragraphs 1.1 and 1.3 have been updated to refer to the relevant parts of the PRA Rulebook;
• paragraphs 1.6 to 1.13 on ‘Consultation feedback’ (following the initial consultation in CP7/13), and ‘Obligations on firms relating to the adequacy of financial resources’ have been deleted;
• paragraphs 2.1 and 2.2 on capital extractions have been updated; and
• on the PRA’s review process, paragraphs 3.1, 3.2, 3.3 and 3.5 have been updated, paragraph 3.4 has been deleted and a new paragraph 3.4A added.