Bulk annuity policies – solvency-triggered termination rights The Prudential Regulation Authority (PRA) has issued a letter to chief risk officers of life insurers active in the bulk purchase annuity (BPA) market on the use of solvency-triggered termination rights in BPAs. The letter follows a thematic review by the PRA and sets out the PRA's concerns and expectations and the next steps for insurers. In particular, the PRA is concerned that the widespread exercise of solvency-triggered termination rights could introduce significant risks to insurers' balance sheets. The letter sets out a number of mitigation actions that the PRA expects insurers to take, including a new requirement for insurers to promptly notify the PRA of any new BPA transactions containing solvency-triggered termination rights. For more information, please see our legal update.