Jurisdiction(s):
United Kingdom

Implementing the PRA’s solvent exit regime: requirements, governance and exit routes (Part VII transfers, schemes, loss portfolio transfers, run-off) for UK‑regulated insurers by June 2026

Published on: 23 July 2025

Published by a Law360 reporter

Legal News

Article summary

With just under twelve months until the new rules on solvent exit planning take effect, many insurers are still at the very early phases of preparation. Securing meaningful progress over summer 2025 will be vital to meet the deadline.

Solvent exit analysis

Under the new regime, insurers will need to create and maintain a solvent exit analysis, setting out measures for an orderly solvent exit as part of business-as-usual. This requirement applies regardless of the prospect of a solvent exit.

The PRA expects a firm’s solvent exit analysis to:

set out solvent exit options, e.g. loss portfolio transfers, Part VII transfers, disposals or run‑offs, that the firm could undertake
include suitable solvent exit indicators to signal when a solvent exit should be triggered, and evaluate the likelihood of successful delivery
address possible barriers and risks, both market‑wide and firm‑specific, to executing a solvent exit; such barriers and risks should be mitigated or removed through business‑as‑usual activity
outline the expected resources, financial and non‑financial, required to deliver a solvent exit
include a communication plan for internal and external

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