Prudential Regulation Authority Rulebook

7.1

In a prospective valuation, a firm must:

1. (1) include in the cash flows to be valued, the following:
1. (a) future premiums;
2. (b) expenses, including commissions;
3. (c) benefits payable; and
4. (d) subject to (2), amounts to be received or paid in respect of contracts of long-term insurance under contracts of reinsurance or analogous non-reinsurance financing agreements; but
2. (2) exclude from those cash flows amounts recoverable from an ISPV.