The Prudential Regulation Authority (PRA) published its long-awaited policy statement PS10/24 on 6 June 2024, setting out changes to the Matching Adjustment (MA) framework.

Some of the statement's key points include:

• providing insurers more comfort that assets already eligible for MA will not need to be considered as assets with highly predictable cashflows
• confirmation that insurers can assume the published FS captures the key risks for vanilla corporate bonds and private placements
• the ability to perform an initial top-down assessment of the appropriateness of the MA at a homogenous risk group level
• extending eligibility for group death in-service dependents annuities and confirming group income protection.

Read our latest newsflash, where Nicola Kenyon, Nick Ford and Rakesh Mazumdar take a look at the policy statement, discuss the changes to the MA framework and what this means for insurers.

Click here to read our full newsflash

If you would like to discuss any of the topics in more detail, please get in touch.