UK insurers weigh alternatives to funded reinsurance
Tougher-than-expected PRA capital proposals push insurers to explore new sources of yield
When the UK’s Prudential Regulation Authority (PRA) published its proposals for funded reinsurance capital requirements on April 29, the headline number landed harder than most in the market had expected: some life insurers would need to hold as much as seven times more capital against funded reinsurance transactions than they do today.
The reaction has been swift. Dealers say life insurers are
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