UK Life Insurers Demonstrate Strength in Bank of England Stress Test

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 17 2025

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Source: Reuters

Stress Test Results: The Bank of England reported that Britain's largest life insurers demonstrated resilience during a severe market stress test, with all 11 participating firms maintaining capital above minimum requirements.
Test Parameters: The stress test simulated a deep global recession characterized by falling interest and inflation rates, significant declines in equity and property values, and widening credit spreads.
Regulatory Framework: This was the first stress test conducted under the new Solvency UK framework, which was implemented last year, and individual firm results will be published next week.
Comparison with Banking Sector: Unlike the Bank of England's stress tests for the banking sector, the PRA's life insurance stress test does not influence capital requirements or buffers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.