PRA takes a closer look at 'funded reinsurance'

Hymans Robertson’s Michael Abramson looks at how schemes and sponsors are likely to treat the regulator’s findings

clock • 3 min read
Hymans Robertson's Michael Abramson
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Hymans Robertson's Michael Abramson

Last month the Prudential Regulatory Authority (PRA) published a letter to chief risk officers at bulk annuity insurers regarding their use of so-called “funded reinsurance”.

These reinsurance arrangements are similar to an insurer doing its own buy-in behind the scenes. The insurer takes a portion of the buy-in/buyout premium received from the pension scheme and passes...

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