Solvency II Matching Adjustment

FactEntry Solutions for Solvency II Fixed Income Matching Adjustment Assets

FactEntry MA solutions help buy side clients identify and source, from the 500,000 bond issues, individual assets that are eligible for inclusion in the MA asset portfolio.This requires precise analysis of the terms and conditions of each individual bond to check eligibility for the Solvency II MA requirements.FactEntry can help Portfolio Managers identify eligible securities as the portfolio changes and is managed over time significantly reducing the length of process.





MA asset cashflows should not give unfettered control to issuers, or third parties, unless insurers receive sufficient compensation to preserve the cashflows that they would have received if the asset cashflows had not been changed. For example, callable bonds which include a Spens and/or Make Whole clause may be considered eligible if the clauses provide adequate compensation on call.

As will bonds with market standard redemption clauses for events beyond the control of the issuer.

The MA assets must be identified and managed separately from the rest of the insurers’ business and must not be used to cover losses arising elsewhere on non-MA business. Also, searching through all permutations of the entire eligible investment universe will be highly time-consuming when.

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