The Prudential Regulation Authority has published a policy statement with feedback on its consultation and final rules for insurance third-country branches. The package raises the threshold of Financial Services Compensation Scheme protected liabilities above which the PRA may expect a firm to subsidiarise to GBP 600 million from GBP 500 million, and it replaces branch reporting waivers with rules based on quantitative thresholds. In the main change from the consultation, the PRA concluded that quarterly reporting offers limited supervisory value relative to cost and will discontinue it for all branches. The final policy applies to all third-country branch undertakings and to insurance or reinsurance undertakings outside the UK or Gibraltar seeking to operate as a branch in the UK, excluding Swiss general insurers. Branches other than pure reinsurance branches with at least GBP 1 billion in gross written premiums or GBP 2 billion in branch provisions will move to the full reporting suite, while smaller branches will continue with a reduced package but must resume two annual non-life claims templates. The PRA also embeds relief for pure reinsurance branches from branch investment rules into the rulebook, clarifies ORSA and triennial resolution report expectations, confirms that cross-referencing between the ORSA and resolution report is acceptable and that additional ORSA content would usually be provided through a branch annex, restates selected EIOPA branch guidelines in PRA rules, and gives branches writing only non-UK risks relief from the resolution report requirement. The higher subsidiarisation threshold takes effect from 21 May 2026. Most other changes, including revocation of the reporting and pure reinsurance branch modifications by consent, take effect on 31 December 2026. The SoP1/19 amendment takes effect on 1 January 2027, and branches moving from limited to full reporting must do so for financial years ending on or after 31 December 2027.
Prudential Regulation Authority2026-05-21
Prudential Regulation Authority finalises third country insurance branch rules with a GBP 600 million subsidiarisation threshold and an end to quarterly reporting
The Prudential Regulation Authority has issued final rules for insurance third-country branches, raising the Financial Services Compensation Scheme subsidiarisation threshold to GBP 600 million and replacing branch reporting waivers with quantitative reporting thresholds. It will discontinue quarterly reporting, move larger branches (at least GBP 1 billion in gross written premiums or GBP 2 billion in branch provisions) to the full reporting suite, and require smaller branches to resume two annual non-life claims templates. The PRA also embeds relief for pure reinsurance branches from branch investment rules, clarifies Own Risk and Solvency Assessment and resolution report expectations, restates selected European Insurance and Occupational Pensions Authority branch guidelines, and grants resolution report relief for branches writing only non-UK risks.