UK life firms rethink forex hedging after PRA note

Matching adjustment applicants using forex forwards have little time to adjust

no-entry

After months of preparation for the Solvency II matching adjustment, the UK regulator has ruled out a key part of some firms’ plans in a letter published just days before official submissions began.

In the most recent of a string of communiqués on the subject, dated March 28, the Prudential Regulation Authority (PRA) shut the door on firms using foreign exchange forward contracts to hedge forex risk on matching adjustment assets. While insurers had fretted over whether more exotic assets would

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: