PRA shifts matching-adjustment asset reporting from 31 December 2026
By IAN Editorial Desk – PRA tightens Solvency UK reporting for matching-adjustment asset data The PRA today finalised Solvency UK reporting and disclosure...
PRA tightens Solvency UK reporting for matching-adjustment asset data
The PRA today finalised Solvency UK reporting and disclosure amendments that move the Matching Adjustment Asset and Liability Information Return (MALIR) templates from Excel to eXtensible Business Reporting Language (XBRL), while removing the permission requirement for equity-accounted subordinated liabilities to be classified into own funds tiers. The policy is intended to apply for reporting reference dates on or after Thursday 31 December 2026.
The own-funds change is capital-relevant because tiering determines how subordinated liabilities are recognised within regulatory own funds. The PRA proposed the change to reduce avoidable burden and align the treatment of equity-accounted and liability-accounted subordinated liabilities for own funds classification.
The main finalised changes are:
- Matching-adjustment reporting: MALIR templates will move from Excel to XBRL, bringing the return into a structured data format rather than a spreadsheet format. XBRL taxonomies define computer-readable tags for business concepts and can include labels, dimensions, data types and validation rules.
- Asset classification data: The reporting templates for the list of assets and assets held as collateral, together with the new MALIR template, will transition to the Nomenclature of Economic Activities (NACE) 2.1 classification.
- Branch liability reporting: Third-country branches must report total Financial Services Compensation Scheme liabilities over three business plan years, giving the PRA forward-looking liability data for branch supervision.
- Own funds permissions: Firms will no longer need permission for equity-accounted subordinated liabilities to be classified into own funds tiers, with related reporting and disclosure templates updated to reflect the change.
- Non-life reporting: The PRA finalised the removal of the proposed new non-life template variant IR.05.04.04. Firms must instead include total income and total expenditure in IR.05.04.02, which remains the template used for solo quarterly reporting, group annual reporting, group quarterly reporting, solo disclosure and group disclosure.
- Line-of-business columns: Additional Solvency UK line-of-business columns in IR.05.04 cover Motor liability, Motor other, Fire and damage to property, and General liability, aligning the template with other non-life reporting templates.
Moving MALIR to XBRL matters operationally because validation can be built into the taxonomy and filing process. XBRL validation can check technical conformance, required items and consistency between reported concepts, reducing reliance on manual handling of spreadsheet returns.
The PRA received six responses to the reporting and disclosure consultation and three responses to Proposal 1 of the own funds consultation. The reporting consultation closed on 4 March, and the PRA proposed aligning the own funds implementation with the reporting policy so firms could build the changes into year-end reporting.
The final policy also deletes the supervisory statement on Solvency II internal model reporting codes and components. That removes a standalone reporting-code statement from the PRA’s Solvency UK materials rather than adding a new reporting obligation.
The changes apply to UK Solvency II firms, the Society of Lloyd’s, its members and managing agents, insurance and reinsurance groups, and UK holding companies. The reporting and disclosure measures are also relevant to insurance and reinsurance undertakings with a UK branch.
Sources: bankofengland.co.uk
