PRU 2 Annex 1 Admissible assets in insurance

(1)

Investments that are, or amounts owed arising from the disposal of:

• debt securities, bonds and other money and capital market instruments;
• loans;
• shares and other variable yield participations;
• units in UCITS schemes, non-UCITS retail schemes, recognised schemes and any other collective investment scheme that invests only in admissible assets (including any derivatives or quasi-derivatives held by the scheme);
• land, buildings and immovable property rights;
• an approved derivative or quasi-derivative transaction that satisfies the conditions in PRU 4.3.5 R or an approved stock lending transaction that satisfies the conditions in PRU 4.3.36 R.

(2)

Debts and claims

• debts owed by reinsurers, including reinsurers' shares of technical provisions;
• 1 deposits1 with and debts owed by ceding undertakings;
• debts owed by policyholders and intermediaries arising out of direct and reinsurance operations (except where overdue for more than 3 months and other than commission prepaid to agents or intermediaries);
• for general insurance business only, claims arising out of salvage and subrogation;
• for long-term insurance business only, advances secured on, and not exceeding the surrender value of, long-term insurance contracts issued by the insurer;
• tax recoveries;
• claims against compensation funds.

(3)

Other assets

• tangible fixed assets, other than land and buildings;
• cash at bank and in hand, deposits with credit institutions and any other bodies authorised to receive deposits;
• for general insurance business only, deferred acquisition costs;
• accrued interest and rent, other accrued income and prepayments;
• for long-term insurance business only, reversionary interests.