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Solvency UK Pillar 1 quantitative requirements: PRA Rulebook on Valuation, Technical Provisions (MA/VA), SCR/MCR, Own Funds, Prudent Person Investments and Group Capital for UK Insurers

Practice notes
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This Practice Note is one of three that outline the prudential regulatory architecture for UK life and general insurers and reinsurers within Solvency UK, the regime stemming from the Solvency II Directive (Directive 2009/138/EC) (Solvency II). It explains how the principal Pillar 1 quantitative standards are embedded in the Prudential Regulation Authority (PRA) Rulebook, covering:

  • valuation of assets and liabilities, including technical provisions for insurance liabilities
  • regulatory capital requirements, including the solvency capital requirement (SCR), the minimum capital requirement (MCR) and technical provisions for insurance liabilities
  • own funds requirements, comprising basic own funds and ancillary own funds
  • investment requirements, including the prudent person principles (PPP)

For a primer on the prudential requirements affecting UK insurers, see: Prudential requirements for UK insurers—introduction. For detail on Pillar 2 (governance and supervision) and Pillar 3 (reporting and disclosure), see Practice Note: Prudential requirements for UK insurers—Pillar 2 and Pillar 3 requirements.

Pillar 1: quantitative requirements in the PRA Rulebook

The quantitative capital requirements constitute Pillar 1 of Solvency UK.

Aim of the quantitative capital requirements of Solvency UK The aim of...

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Web page updated on 21/05/2026

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