Final Report on revised ITS on the matching adjustments - Solvency II Review

The Solvency II review will allow undertakings using the matching adjustment (MA) to assume full diversification between their MA portfolio and the rest of the undertaking when calculating their Solvency Capital Requirement (SCR), provided that the undertaking’s best estimate of insurance and reinsurance obligations does not form a ring-fenced fund. The revised ITS on the treatment of the matching adjustment ensure consistency with this amendment.