Clifford Chance

Funded Re – PRA supervisory statement

14 August 2024

On 26 July 2024, the Prudential Regulation Authority (“PRA”) published its final supervisory statement (SS 5/24) (the “Supervisory Statement”) on funded reinsurance (“Funded Re”). The Supervisory Statement was accompanied by a Dear CEO letter outlining the implementation approach for the Supervisory Statement (the “Letter”).

The Supervisory Statement followed a consultation on Funded Re arrangements (see PS13/24, the “Policy Statement”) and consultation paper CP 24/23 (“Consultation Paper”).

In this briefing note, we focus on the actions that the PRA expects firms engaging in Funded Re to take in order to ensure compliance with the Supervisory Statement and the Letter.

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