Guidance

SS14/15 – With-profits

Chapter

Introduction

Printed on: 29/08/2024

Rulebook at: 20/03/2015

1

Introduction

1.1

This supervisory statement is directed to all UK firms that write with-profits insurance business.1 By setting out the Prudential Regulation Authority’s (PRA’s) expectations of firms that write such business, this statement promotes the safety and soundness of those firms and the benefit security of policyholders.

  • 1. By referring to firms that write with-profits business, the PRA intends for this to capture not only firms which actively write new with-profits business, but also firms with closed with-profits funds.
  • 20/03/2015

1.2

Both conduct and prudential matters are relevant to the regulation of with-profits insurance business. The PRA expects that firms will need to have regard to the following rules and regulations when writing and administering with-profits insurance business:

(a) for Solvency II firms, the Solvency II Regulations including ring-fenced fund provisions, and for non-Directive firms any PRA-designated rules in prudential sourcebooks;2

(b) the PRA Rulebook and any relevant supervisory statements; and

(c) the Financial Conduct Authority’s (FCA’s) Handbook.

  • 2. Prudential Sourcebook for Insurers (INSPRU); General Prudential Sourcebook (GENPRU); Interim Prudential Sourcebook for Insurers (IPRU(INS)); Supervision (SUP); and Interim Prudential Sourcebook for Friendly Societies (IPRU(FSOC)).
  • 20/03/2015

1.3

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.

  • 20/03/2015

1.4

This statement has been subject to public consultation and reflects the feedback that was received by the PRA.3

  • 20/03/2015