PRA issues policy statement on matching adjustment under Solvency 2

Following 12 responses received to the earlier consultation paper, PRA has issued a policy statement on matching adjustment – illiquid unrated assets and equity release mortgages. The policy statement includes the final supervisory statement, which sets out the PRA’s expectations.

The policy statement is relevant to life insurance and reinsurance companies holding or intending to hold unrated assets, including restructured equity release mortgages, in a matching adjustment portfolio.



FIN. Team