Solvency II: Income producing real estate loans and internal credit assessments for illiquid, unrated assets

Prudential Regulation Authority publishes PS9/20 Solvency II: Income producing real estate loans and internal credit assessments for illiquid, unrated assets 2 April 2020 This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 23/19 ‘Solvency II: Income producing real estate loans and internal credit assessment for illiquid, unrated assets’. It also contains the PRA’s final Supervisory Statement (SS) 3/17, ‘Solvency II: Illiquid unrated assets’. The PS is relevant to UK insurance and reinsurance companies holding or intending to hold income producing real estate (IPRE) loans. It is also relevant to firms investing in illiquid, unrated assets within their Solvency II matching adjustment (MA) portfolios.