Huw Evans, Head of Insurance at KPMG UK, said: "The Life Insurance Stress Test demonstrates that UK life insurers remain well-capitalised even under severe but plausible conditions. It also highlights areas where some business models are more sensitive. This includes exposure to property-related assets and a Funded Reinsurance recapture scenario, where the PRA is likely to pursue a change in policy to the capital treatment of such transactions.
“Next week’s publication of firm-level results marks a significant shift in the PRA's approach to the stress testing of life insurers, making the UK an outlier internationally. Nevertheless, the overall results underline the resilience of the UK life market."
-ENDS-
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