Overview
In this Supervisory Statement (SS), the Prudential Regulation Authority (PRA) sets out its expectations of firms in respect of application of the matching adjustment (MA) and the use of the matching adjustment investment accelerator (MAIA). The MA allows firms to adjust the relevant risk-free interest rate term structure for the calculation of a best estimate of a portfolio of eligible insurance obligations. The MAIA enables firms to claim an MA benefit on eligible assets that contain features not currently within the scope of the firm’s existing MA permission.
The scope of this SS includes the assessment of eligibility for assets and liabilities, demonstrating compliance with the matching conditions, calculation of the MA benefit, ongoing management and compliance of MA portfolios, applications for MA approval and subsequent changes to an MA portfolio, and the implication of changes to the MA portfolio that are outside the scope of an existing MA approval; and applications for permission to use the MAIA, subsequent variations of MAIA permissions, and the ongoing management of firms’ use of MAIA permissions.
Current version
Published on 23 October 2025. Effective from 27 October 2025.
- following PS17/25 – Matching Adjustment Investment Accelerator
Past versions
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Published on 15 November 2024. Effective from 31 December 2024.
- following PS15/24 – Review of Solvency II: Restatement of assimilated law
Published on 6 June 2024. Effective from 30 June 2024.
- following PS10/24 – Review of Solvency II: Reform of the Matching Adjustment
Published on 13 July 2018. Effective from 13 July 2018.
- following PS18/18 – Solvency II: Matching adjustment
First publication of SS.