Prudential Regulation Authority consults on Matching Adjustment Investment Accelerator to allow immediate matching adjustment on self assessed assets within 5% or GBP 2 billion cap

The Prudential Regulation Authority has published a consultation proposing a new Matching Adjustment Investment Accelerator (MAIA) framework to let UK insurers invest in new assets more quickly and claim Matching Adjustment (MA) benefit without obtaining prior PRA approval for those assets. Under the proposed MAIA, firms with an existing MA permission could apply for a separate MAIA permission, allowing them to add a limited quantity of self-assessed MA-eligible assets with features outside their current MA permission and claim the MA benefit immediately. Firms would then have 24 months to submit an MA variation application to “regularise” the MAIA assets, with assets requiring removal from the MA portfolio if the variation is not approved. The PRA proposes standard exposure limits generally set at the lower of 5% of best estimate liabilities of the MA portfolio (net of reinsurance) and a firm-proposed amount capped at GBP 2 billion, with expectations on cumulative use across groups. The package would amend the Matching Adjustment and Reporting Parts of the PRA Rulebook, update supervisory statements including SS7/18, SS8/18 and SS5/24, and revise the Statement of Policy on MA permissions. It would also introduce an annual MAIA use report (due within 14 weeks of financial year end) and add two fields to the Matching Adjustment Asset and Liability Information Return (MALIR) template. Responses are requested by 4 June 2025. Subject to consultation feedback, the PRA expects the framework to be implemented in Q4 2025, while the MALIR template changes would begin from 31 December 2026.