Prudential Regulation Authority Rulebook

2A.1

The TMTP provides relief from the increase in technical provisions which results from changes introduced by Solvency II (in respect of business written before the introduction of the Solvency II regulatory regime), including the introduction of the risk margin. Where the TMTP makes a material contribution to own funds, the PRA expects firms to analyse the material components and drivers of this benefit to facilitate better risk management. The PRA expects that this analysis would be included within firms’ own risk and solvency assessments, including how the components may change over time and under a range of operating conditions, and that firms will make this analysis available to the PRA.