Insurers to repackage assets for matching adjustment
Repackaging assets that fail to meet the criteria for Solvency II’s matching adjustment could be one way for insurers to secure capital relief and hold on to attractive yields. Rob Mannix reports on the structures being considered and the alternative options available
As the finer details of Solvency II become more clear, insurers are puzzling over what to do about parts of the regulation where the final rules fall short of what they hoped for. One such area is the matching adjustment, a rule that allows insurers to discount liabilities more favourably if they hold assets that match directly with corresponding liabilities.
The adjustment is one of several amendments to Solvency II that have been strongly contested by insurers over several years, right up
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