Prudential Regulation Authority Rulebook

3.1

[Deleted].

3.2

The PRA expects third-country undertakings to maintain financial soundness at branch level (Guidelines 17-26) to ensure that the branch policyholders enjoy the same level of protection as those policyholders of an insurance undertaking situated in the UK.

3.3

The PRA expects considerable importance to be attached to calculating branch own funds so as to ensure that only those assets that are available to pay the claims of branch policyholders in the event of a winding up event are included in the calculation of branch assets. Assets will be deemed to be available, where either all of the third-country branch undertaking’s assets would be available to pay insurance policyholders in priority to other creditors irrespective of the location of the policyholders, or where those assets are exclusively available to pay the claims of branch insurance policyholders (Guidelines 6 and 25).

3.4

3.5

In the context of third-country branch undertakings observing quantitative reporting requirements (Guidelines 44-61 and any subsequent deletions or amendments of specific templates that have been implemented by the PRA after the end of the transition period), the PRA is taking a proportionate approach as set out in section 6 of this supervisory statement.