Solvency UK

Solvency UK is the UK prudential framework for insurers following the reform of retained Solvency II rules. The Prudential Regulation Authority has implemented matching-adjustment reforms, including revised asset eligibility and attestation requirements, and set reporting and investment expectations around the reforms. Separately, the UK Government reduced the risk margin through legislation. The framework affects how long-term insurers value eligible liabilities, calculate capital and evidence the assets backing annuity business.

The detailed rules sit in the PRA Rulebook and supervisory material, while firms also work through the practical effect on asset eligibility, internal models, credit analysis and portfolio reporting. Coverage here follows policy statements, consultations, firm disclosures and the matching-adjustment market. The selection combines regulation and policy articles with matching-adjustment coverage that refers directly to Solvency UK; it avoids treating general Solvency II reporting as a substitute for the UK reform. It also links to the monthly volatility-adjustment series, which is a separate regulatory adjustment and should not be conflated with the matching adjustment.