The Prudential Regulation Authority (PRA) has issued a consultation proposing targeted amendments to its UK Solvency II framework for third-country insurance branches, aimed at addressing inconsistencies identified after the 2024 reforms, further streamlining requirements, and clarifying supervisory expectations. The central proposal is to increase the indicative subsidiarisation threshold for third-country insurance branches, based on Financial Services Compensation Scheme covered liabilities, from GBP 500 million to GBP 600 million. The package would also replace routine reporting waivers delivered via modifications by consent with rule-based, threshold-driven requirements. Under the proposed approach, only branches with at least GBP 1 billion in gross written premiums or GBP 2 billion in branch provisions would be required to submit the full reporting suite, with smaller branches reporting a reduced subset. For smaller branches, the PRA proposes reinstating two annual templates (IR.19.01.01 and IR.20.01.01) while discontinuing quarterly reporting. Additional measures include embedding existing investment relief for pure reinsurance branches into the Rulebook, clarifying expectations for branch Own Risk and Solvency Assessment reports and triennial resolution reports, restating selected remaining EIOPA Branch Guidelines in PRA rules and policy while disapplying the remainder, and minor policy fixes such as removing branch eligibility for volatility adjustment permissions. The consultation applies to third-country branch undertakings and non-UK or non-Gibraltar insurers seeking to operate as UK branches, excluding Swiss general insurers. Responses are due by 16 December 2025, with the subsidiarisation threshold change proposed to apply upon publication of the final policy statement expected in H1 2026, and most other changes proposed to take effect on 31 December 2026.
Prudential Regulation Authority 2025-09-16
Prudential Regulation Authority consults on raising the third-country insurance branch subsidiarisation threshold to GBP 600 million and simplifying branch reporting rules
The Prudential Regulation Authority (PRA) is consulting on amendments to the UK Solvency II framework for third-country insurance branches, proposing to raise the subsidiarisation threshold from GBP 500 million to GBP 600 million. Changes include replacing routine reporting waivers with rule-based requirements, affecting branches with GBP 1 billion in gross written premiums or GBP 2 billion in provisions. Additional measures clarify supervisory expectations and embed existing investment relief for pure reinsurance branches into the Rulebook.