Private Equity’s Go-To Insurance Trades Set to Face UK Curbs (1)

The UK plans to clamp down on a tool often used by life insurers to offload liabilities to private equity-backed firms, the latest example of intensifying regulatory scrutiny of the links between the insurance industry and private markets.

The Bank of England is preparing to tighten its treatment of funded reinsurance, according to people familiar with the plan, who asked not to be identified discussing non-public information.

The deals allow insurers to transfer risks, often linked to corporate pensions, in a way that ties up minimal amounts of capital. The other side of the trade is usually taken by an ...