Last year, a £2bn UK bulk annuity deal came down to two finalists. The losing bidder was told that if they could sharpen their pencil, they were back in the game.

Overnight, the pricing team asked their Bermuda reinsurer to take an extra 10% under a Funded Reinsurance treaty. The capital release flowed through, new business strain dropped, and they won the deal.

That trade, repeated dozens of times across the BPA market over the past three years, is what the PRA has just repriced into uneconomic territory with CP8/26.

My new Substack piece on why this is good news for the listed UK life sector, why I disagree with the bears, and what the listed insurers should do next.

Link in the comments. Not investment advice.