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ARTICLE · 30 MARCH 2026

Weighing Up The PRA's Early Account Scheme: Insights From The First Case Concluded Using The Process

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

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In March 2026, the UK Prudential Regulation Authority (PRA) fined U K Insurance Limited (UKI) £10.6 million for failures relating to an overstatement of its Solvency Capital Requirement Coverage Ratio between 2023 and 2024.

United KingdomFinance and Banking
Hywel Jenkins
Hywel Jenkins
Jack Moore
Jack Moore
Emma Bridgeman
Emma Bridgeman
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In March 2026, the UK Prudential Regulation Authority (PRA) fined U K Insurance Limited (UKI) £10.6 million for failures relating to an overstatement of its Solvency Capital Requirement Coverage Ratio between 2023 and 2024. 

This is the first outcome using the PRA's Early Account Scheme (EAS), which was introduced in January 2024 as part of the PRA's revised enforcement approach (see our earlier articles here and here); it offers useful insight into how the scheme will operate in practice and how firms should approach the decision whether to participate. 

Background: A significant but non-deliberate reporting failure

UKI made a miscalculation of its Solvency II balance sheet which resulted in it overstating its solvency to the PRA and to the market to an overall figure of £99.9 million by the end of Q1 2024.

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