1
Introduction
1.1
This supervisory statement is addressed to Lloyd’s. It sets out the Prudential Regulation Authority’s (PRA’s) expectations in relation to the application of certain parts of Solvency II to Lloyd’s, and expands upon the Lloyd’s Part of the PRA Rulebook.
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1.2
In particular, this statement sets out the PRA’s expectations regarding the following topics:
- amendments to trust deeds;
- solvency capital requirement (SCR);
- capital add-ons; and
- composites.
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1.3
This statement expands on the PRA’s general approach as set out in its insurance approach document.[1] By clearly and consistently explaining its expectations of Lloyd’s in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders. The PRA has considered matters to which it is required to have regard, and it considers that this statement is compatible with the Regulatory Principles and relevant provisions of the Legislative and Regulatory Reform Act 2006. This statement is not expected to have any direct or indirect discriminatory impact under existing UK law.
Footnotes
- 1. The Prudential Regulation Authority’s approach to insurance supervision, June 2014; https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/approach/insurance-approach-2014.pdf
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1.4
This statement has been subject to public consultation[2] and reflects the feedback that was received by the PRA.
Footnotes
- 2. PRA Consultation Paper CP16/14, ‘Transposition of Solvency II: Part 3’, August 2014; www.bankofengland.co.uk/pra/Documents/publications/cp/2014/cp1614.pdf.
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