UK Prudential Regulation Authority finalizes Solvency UK reporting and own funds changes for year-end 2026

The UK Prudential Regulation Authority has issued final policy amending Solvency UK reporting, disclosure and own funds requirements for insurers, reinsurers, Lloyd’s entities, insurance groups, UK holding companies and third-country branches. The changes address issues identified after the 2024 reporting reforms and will apply to reporting reference dates on or after Dec. 31, 2026, with related Own Funds and Group Supervision rule changes taking effect on the same date. The final policy transfers the Matching Adjustment Asset and Liability Information Return from Excel to eXtensible Business Reporting Language and reduces certain cash flow reporting from monthly to annual. It also allows optional use of Nomenclature of Economic Activities 2.1 codes from the Dec. 31, 2026, reference date ahead of mandatory implementation from Jan. 1, 2027. Following consultation feedback, the PRA reduced third-country branches’ projected Financial Services Compensation Scheme liabilities reporting from three years to one year and dropped a proposed new income and expenditure template variant. The PRA also removed the permission requirement for classifying equity-accounted subordinated liabilities into own funds tiers, while retaining the standard pre-issuance notification process and permissions for items outside the recognized lists. Consequential reporting instructions and validations have been revised to clarify the treatment of equity- and liability-accounted subordinated instruments and prevent double counting in the reconciliation reserve. An updated reporting taxonomy covering both policy packages will be published shortly.