The Standard Formula

On the latest episode of "The Standard Formula," host Rob Chaplin is joined by associates Dev Jain and Richi Kidiata for a comprehensive tour of Africa’s rapidly evolving insurance landscape. The team delves into the regulatory frameworks of South Africa, Morocco, Egypt, Nigeria and Kenya — markets at the forefront of aligning with international best practices and standards such as Solvency II — and breaks down each jurisdiction’s approach to capital and liquidity requirements, risk management and governance, while highlighting recent reforms, local challenges and the growing integration of African insurers into the global financial system. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Richi Kidiata Organization: Skadden Name: Dev Jain Organization: Skadden Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

While Latin America accounts for just 3% of the global insurance market, the region's total written premiums grew at an impressive 11% annually between 2019 and 2024, with projections indicating this growth will continue. In this installment of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleagues Caroline Jaffer and James Pickstock do a deep dive into the insurance regimes in Mexico, Brazil, Chile and Argentina. Tune in as they break down each jurisdiction's regulatory authority, unique prudential requirements and gradual shift toward European or Bermudian-style risk-based systems. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guests 💡 Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in both the U.K. and internationally, having practised in both the U.K. and the Middle East. Organization: Skadden Words of wisdom: “On investments, Brazil has strict and detailed rules on what type of assets may be invested by insurers and local reinsurers, with such rules being set by Brazilian finance authorities and reviewed periodically. These same rules impose certain investment limits per class of asset and issuer.” Connect: LinkedIn Name: James Pickstock What he does: James advises on a wide range of corporate and regulatory matters, including U.K., cross-border and global mergers and acquisitions, group restructurings, reinsurance transactions and Part VII transfers, as well as governance and conduct issues. Organization: Skadden Words of wisdom: “The Chilean insurance market is reasonably open to international reinsurers and foreign investment, with some standard regulatory overlay. For example, foreign reinsurers can operate directly in Chile provided they meet certain conditions — being that they have a risk rating of at least BBB or equivalent, and that they have an appointed representative on the ground.” Connect: LinkedIn Connect with Skadden ☑️

Canada has one of the world's most sophisticated and internationally integrated insurance markets, marked by robust capital requirements and an increasing orientation towards ESG- and climate-related considerations. Continuing Skadden’s global tour of prudential solvency regimes, host Rob Chaplin and colleague Chiara Iorizzo examine Canada’s insurance regulation structure, valuation approach, capital quality standards and modernization efforts. 🗝️ Key Points 🗝️ Top takeaways from this episode Division of OversightLife Insurance Capital Adequacy Test (LICAT)International Financial Reporting Standard 17 (IFRS 17)The Future of Canadian Involvency Regulation: 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Chiara Iorizzo What she does: Chiara advises on domestic and cross-border mergers and acquisitions, group restructurings, regulated financings, governance and regulatory matters for private equity sponsors, asset...

In this episode of The Standard Formula, host Robert Chaplin and Skadden colleague Theo Charalambous provide a high-level refresher on Solvency II, Solvency UK and relevant recent developments as part of Skadden’s year-long podcast series on global prudential solvency requirements. The hosts detail both regimes and relevant topics, including the Matching Adjustment Accelerator (MAIA), enhanced liquidity reporting requirements, and new exit planning obligations for Solvency UK that represent a shift away from Solvency II toward a U.K.-focused approach. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Theo Charalambous What he does: Theo counsels insurers, brokers and private equity sponsors on mergers and acquisitions, disposals, investments, reorganizations, alternative transaction structures and multijurisdictional regulatory matters. Organization: Skadden Words of wisdom: “In the U.K., the PRA requires that insurers’ investment strategies should be aligned with its investment objectives and asset allocation, the board's risk appetite, risk tolerance limits, investment risk-return objectives, as well as alignment of the investment strategy with its business model.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

India has emerged as the 10th-largest insurance market in the world by total premium volume, yet its insurance penetration level sits around 3%-4%, well below the global average of 7%. In the eighth episode of Skadden's year-long podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Anika Goodfellow explore the country’s evolving insurance regulatory landscape and outline its goal of transforming the sector to allow for companies to more easily conduct business. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Anika Goodfellow What she does: Anika has extensive experience advising reinsurers, brokerages, asset managers and financial sponsors on a wide range of transactions, including U.K., cross-border and global mergers and acquisitions, disposals, investments, carve-outs, consortium deals and group restructurings. Organization: Skadden Words of wisdom: “The insurance sector in India is shifting toward a risk-based capital, or RBC, regime. This is part of IRDA's “Insurance for All by 2047” initiative to bring the Indian insurance industry in line with international standards and to catch up with India's payers in North America and Europe.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

China's insurance market has emerged as the second-largest in the world and is on pace to become the largest worldwide by the 2030s. In the seventh episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and Skadden colleague Feargal Ryan explore China's regulatory transformation from a centralized state monopoly to a sophisticated risk-based system. They highlight the establishment of the National Financial Regulatory Administration, the implementation of the China Risk-Oriented Solvency System (C-ROSS) and Shanghai’s recent growth as an international reinsurance hub. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Feargal Ryan What he does: Feargal is a counsel in Skadden’s Financial Institutions and Insurance groups. He advises on a wide range of insurance-related transactions, as well as regulatory issues in the insurance sector. Organization: Skadden Words of wisdom: “Despite the delayed start, China's insurance market has grown rapidly and is the second-largest insurance market globally in terms of total premium volume following only the United States. It is predicted to become the largest market globally by the mid-2030s. In 2024, China recorded a total insurance premium income of 5.7 trillion Chinese Yuan, equivalent to approximately US$794 billion, which is an 11.15% year-on-year increase. China is home to approximately 10% of the world's global insurance activities. The Chinese market serves as a unique opportunity for foreign insurers, especially considering the size of its population, demographics, and the rapid economic development throughout recent decades.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by

In the latest episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Rob Chaplin and colleague Chiara Iorizzo explore regulatory capital in the United States, one of the largest insurance markets in the world. They discuss how the insurance industry is regulated across the country, as well as how the National Association of Insurance Commissioners operates and interacts with state-level regulators. They also review how solvency capital is calculated in the U.S. and how companies licensed in multiple states must adhere to relevant laws in each jurisdiction, among other topics. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Chiara Iorizzo What she does: Chiara is an associate in Skadden's Financial Institutions Group who is admitted to practice in England & Wales and in New York. Organization: Skadden Words of wisdom: “Each insurance company is domiciled in one state, subject to certain exceptions where an insurer can be deemed to be commercially domiciled in a second state. While insurers are primarily regulated by the domiciliary regulator, they're also subject to the laws of each and every state where they're licensed.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

The Middle East insurance market is expected to grow significantly as a hub over the next several years, with predicted growth of almost 29% by 2028. In the fifth episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Caroline Jaffer explore the regulatory landscape in the UAE, Saudi Arabia, Qatar, Bahrain and Oman. During the discussion, Mr. Chaplin and Ms. Jaffer explore the state of the Middle East insurance sector, including “financial free zones,” capital requirements, solvency margins and the growing influence of international standards in the region's evolving insurance markets. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in both the U.K. and internationally, having practised in the U.K. and the Middle East. Organization: Skadden Words of wisdom: “There are more than 50 free zones in the UAE, which have been designed to attract investment into the country into their designated sectors by, for example, permitting 100% foreign ownership.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the fourth episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and associate James Pickstock explore the Cayman Islands' insurance regulatory landscape. As the second-largest jurisdiction for captives and a significant player in reinsurance markets, the Cayman Islands provides insurers with the ability to design a bespoke capital, investment and resourcing model that is right for individual companies’ needs, making it an attractive market for insurers. Rob and James discuss the Cayman Islands’ insurance history, regulatory classifications, solvency capital requirements and investment rules. They also examine how the jurisdiction aligns closer to the U.S. solvency regime as opposed to Solvency II standards. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: James Pickstock What he does: Based in London, James is an associate in Skadden’s Financial Institutions Group. Organization: Skadden Words of wisdom: "A key takeaway is that it is essential for each insurer to assess the suitability of the jurisdiction within the context of their own business and the risks they underwrite." Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the third episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Annabel Smethurst discuss Japan's insurance and regulatory landscape. As the world's fourth-largest insurance market, Japan has become increasingly attractive to foreign insurers due to its mature market, aging population and ongoing regulatory reforms. Rob and Annabel explore Japan's regulatory framework, its evolution from the "financial Big Bang" of the 1990s and the flourishing reinsurance sector that has emerged as the country aligns with international standards such as Solvency II and the Insurance Capital Standard (ICS). 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Annabel Smethurst What she does: Annabel advises on insurance transactions and regulatory matters, with particular experience in the restructuring of insurance businesses and Solvency II implementation. Organization: Skadden Words of wisdom: "Japan's insurance market is becoming increasingly attractive to overseas insurers due to ongoing regulatory reforms aimed at improving financial stability and aligning Japan with international standards." Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the second episode in Skadden’s yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Abraham Alheyali discuss the regulatory regime in Bermuda, a global center for insurance and reinsurance. More than 30 major firms underwrite from the country, and it is the largest supplier of catastrophe reinsurance to U.S. insurers. Rob and Abraham discuss the Bermuda Monetary Authority’s (BMA’s) regulatory approach toward different types of insurers and reinsurers, the four key concepts in Bermuda’s prudential regime, various requirements for capital holdings and investments, and how the insurance industry’s growth and increasing sophistication will likely lead to future regulatory changes. 🗝️ Key Points 🗝️ Top takeaways from this episode The History of Insurance in BermudaKey ConceptsPrivate Equity InsurersRegulatory Changes 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Europe Head, Financial Institutions at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Abraham Alheyali What he does: Abraham is a London-based associate in Skadden’s Financial Institutions Group. He has experience working on a wide variety of matters, including transactions involving private equity sponsors. Organization: Skadden Words of wisdom: “Along with being highly regarded from a regulatory perspective, Bermuda’s favorable tax regime allows reinsurers to operate with greater capital efficiency. The island’s history of innovation in insurance markets — along with the ease of doing business there — also makes it a popular jurisdiction.” Connect:

Host Rob Chaplin and Skadden colleague Caroline Jaffer debut the first episode of a yearlong series on global prudential solvency requirements, which will form the basis of the forthcoming Encyclopaedia of Prudential Solvency publication. In this episode, they discuss the International Association of Insurance Supervisors’ (IAIS’) December 2024 adoption of the Insurance Capital Standard (ICS), which Rob notes is a “watershed moment” in global insurance regulation. Rob and Caroline outline key components of the IAIS and the ICS, as well as detail what supervisory authorities and internationally active insurance groups (IAIGs) can expect next regarding the ICS. 🗝️ Key Points 🗝️ Top takeaways from this episode The IAIS’ Regulatory StandardsThe Insurance Capital Standard (ICS)What’s Next for the ICS? 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in the U.K. and internationally, having practiced in the U.K. and the Middle East. Title: Caroline is an associate in Skadden’s Financial Institutions Group. Words of wisdom: “When setting out how insurers should value their assets and liabilities, supervisory authorities should adopt a regulatory standard at least as stringent as Market-Adjusted Valuation (or MAV).” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts,...

As 2024 draws to a close, Rob Chaplin invites colleagues to review a year of change throughout the insurance industry. In keeping with the spirit of a traditional holiday countdown, the team presents 12 topics that spanned the year. For more Skadden insights about Solvency II, click here for their updated guide, The Standard Formula: A Guide to Solvency II. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In this installment of The Standard Formula’s series on Solvency II, host Robert Chaplin and Chiara Iorizzo unpack the regime’s public reporting element. As Rob explains, public reporting “bolsters transparency and market discipline across the insurance industry.” Rob and Chiara cover requirements of the Solvency and Financial Condition Report (SFCR) and discuss some proposed changes to these reporting requirements. They also explore external audit requirements and review the role of the European Insurance and Occupational Pensions Authority (EIOPA) in information disclosure. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Chiara Iorizzo What she does: Chiara is an associate in Skadden’s Financial Institutions Group. Organization: Skadden Words of wisdom: “The purpose of the SFCR is to provide stakeholders, like policyholders and regulators, with a comprehensive overview of the insurer’s solvency and financial condition.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Host Robert Chaplin and guest James Pickstock cover the Solvency II supervision framework, which is designed to protect policyholders and promote insurer soundness. They focus on the Regular Supervisory Report (RSR), a quantitative tool that is among four key areas that insurers must disclose to supervisors. Robert and James also look ahead to legislative reform effective at year’s end. Watch for our next episode, which will focus on the Solvency and Financial Condition Report, another key area that must be reported to supervisors. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: James Pickstock What he does: Based in London, James is an associate in Skadden’s Financial Institutions Group. Organization: Skadden Words of wisdom: “The U.K. reforms take effect from the 31 December, 2024. Under both the U.K. and EU frameworks, insurers that don’t exceed the new increased thresholds will continue to be able to operate under the Solvency II regime, should they wish to, by applying for a voluntary requirement.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

When U.K. insurers observe they cannot comply with requirements under Solvency II, there are detailed steps that one must take. Feargal Ryan, European counsel in Skadden’s Financial Institutions Group, and host Rob Chaplin, head of the firm’s Financial Institutions Group in Europe, break down insurers’ obligations. They explain differences between the Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR) and examine the Prudential Regulation Authority’s (PRA’s) requirements. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Feargal Ryan What he does: Feargal advises on a wide range of insurance-related transactions, as well as regulatory issues in the insurance sector. Organization: Skadden Words of wisdom: “The first and most critical step is to initiate a frank and open dialogue with the PRA. Once there is any observation of actual or potential non compliance with the SCR, the insurer should detail all material matters impacting upon the insurer's financial difficulty, as well as any matters that may, in the short, medium, and or long term, impact upon the financial condition of the insurer.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Because strategically allocating assets and managing investments are key to an insurer’s business, valuing assets and liabilities is an important area of focus. In this episode of “The Standard Formula,” host Rob Chaplin, head of Skadden’s Financial Institutions Group in Europe, is joined by associate Olivier Peeters for a conversation about Solvency II’s requirements for asset and liability valuation. Rob and Oliver cover the general principles and specific rules for some balance sheet items and explore recent trends regarding investments into illiquid, or alternative, assets. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Olivier Peeters What he does: Olivier advises insurers, brokers and private equity sponsors on mergers and acquisitions, disposals, investments, reorganizations, alternative transaction structures, multijurisdictional disputes and regulatory matters. Organization: Skadden Words of wisdom: “Where quoted market prices are not readily available, insurers should be prepared to justify their valuation approach to the regulator. For insurers that routinely invest in illiquid assets, it may also be necessary to establish and document evaluation framework and relevant valuation procedures. This is particularly the case in a matching adjustment context.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X & LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Solvency II imposes numerous governance requirements on insurers. In this episode of “The Standard Formula” podcast, Skadden partner Sebastian Barling and Rob Chaplin, host and head of Skadden’s Europe Financial Institutions Group, guide insurers through these complex requirements. They spotlight the Own Risk and Solvency Assessment, or ORSA, a cornerstone component of Solvency II that insurers must use to assess their risks and solvency needs. Sebastian and Rob also detail the Senior Managers and Certification Regime, or SMCR, which applies to insurers in the United Kingdom. The SMCR complements and enhances the governance requirements under Solvency II. They close with an overview of operational resilience and outsourcing requirements. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Sebastian Barling What he does: Sebastian is a partner in Skadden’s financial institutions regulatory practice. He provides U.K. and EU financial regulatory advice to businesses in the financial services sector. Organization: Skadden Words of wisdom: “Governance plays a crucial role under both Solvency II and the applicable PRA guidelines. This includes active involvement from senior management and the board to ensure that resilience measures are effective and regularly reviewed.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X & LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

“Insurers are expected to hold eligible owned funds in excess of the Solvency Capital Requirement. There are two main methods of calculating the SCR under Solvency II, the standard formula and internal model methods.” In this episode of “The Standard Formula” podcast, Rob Chaplin, host and head of Skadden’s Europe Financial Institutions Group is joined by colleague George Belcher to discuss Solvency II’s internal models (IM). Despite a higher cost of development, IMs offer numerous benefits, such as more accurate risk sensitivity, more flexibility and more available data. Rob and George also explore partial IMs, changes to existing models, the PRA approval process and implications of the U.K.'s move away from EU Solvency II standards. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob is the head of Skadden’s Financial Institutions Group in Europe. He primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: George Belcher What he does: George is European Counsel in the Financial Institutions and Insurance Groups at Skadden. He focuses on insurance-related public and private acquisitions and private equity investments, as well as regulatory issues in the insurance sector. He also frequently advises on matters related to Lloyd’s of London. Organization: Skadden Words of wisdom: “A firm may choose a partial IM where a particular aspect of its business does not fit well within the standard formula.” Connect with Skadden ☑️ Follow us on Twitter & LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

“The Solvency Capital Requirement, or SCR, is designed to protect policyholders by helping to make sure that insurers can survive difficult periods and pay claims as they fall due.” In this episode of "The Standard Formula" podcast, Rob Chaplin, host and head of Skadden’s Europe Financial Institutions Group, is joined by colleague Will Adams as they take an in-depth look at the Solvency Capital Requirement, one of Solvency II’s most important and complex provisions. The discussion covers the SCR’s key features, risk modules, how it’s calculated and its relationship with the Minimum Capital Requirement (MCR). They also discuss the standard formula (for an in-depth discussion of technical provisions, listen to the previous episode). 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob is the head of Skadden’s Financial Institutions Group in Europe. He primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Will Adams What he does: Will is a trainee solicitor in the Financial Institutions Group at Skadden. Organization: Skadden Words of wisdom: “The SCR can be calculated by either using the standard formula prescribed by the PRA rulebook and Solvency II, or by using a PRA-approved internal model bespoke to the company concerned.” Connect with Skadden ☑️ Follow us on Twitter & LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.