front a part of the income they expect to earn on their assets in the future, as long as they can show that the cashflows they expect to receive from those assets closely match the payments they have undertaken to make to their policyholders. 10. this would be the case if insurers were to agree to reinsurance contracts with collaterals such as asset backed securities and collateralised loan obligations, non - gbp illiquid assets and fx exposure. 11. mckinsey ’ s private markets annual review | mckinsey, exhibit 4. 12. as a reminder, firms must comply with the pra ’ s restriction of business rules and ensure that it does not carry on any commercial business other than insurance business and activities directly arising from that business. 13. ss3 / 17'solvency ii : illiquid unrated assets'14. four rs : creating the conditions for long - term sustainable growth in the life annuity sector – speech by charlotte gerken 15. solvency ii | eiopa 16. ss1 / 20 solvency ii : prudent person principle annex

john gieve : a tale of two cycles speech by sir john gieve, deputy governor of the bank of england, to the north east chamber of commerce durham tees valley dinner, durham, 19 june 2008. * * * introduction ladies and gentlemen, it is a great pleasure to be here this evening in what has been a busy week for the bank, with the open letter to the chancellor in response to the news on tuesday that cpi inflation rose to 3. 3 % in may, the latest mpc minutes, and the chancellor ’ s announcement last night of an enhanced role for the bank on financial stability. things have certainly changed in the year since your chief executive, james ramsbotham, asked me to speak here this evening. the bank's links with this region go back to 1828 when, in response to a crisis of confidence ( this one over locally issued bank notes ), we opened a branch in newcastle. the move was not well received. the newcastle chamber of commerce, wrote to the directors of the bank of england, saying " in the absence of any avowed motive for the establishment of a branch of the bank of england, in newcastle, [ we ] see no prospect of good from such an establishment....... [ we ] most earnestly recommend to the directors of the bank of england to re - consider the policy of the measure they are about to adopt and to abstain from trying such an experiment on a system of banking, the advantages of which are so generally felt and admitted. " i am pleased that our current agents, david buffham and will dowson receive a warmer welcome from chamber members and others as they travel around the region. our agents are the eyes and ears of the bank. they make sure that we take account not just of the economic statistics, which at best tell us what has just happened ( and all too frequently fail to do that ), but also know what businessmen and women are saying about their own outlook and plans. the monetary policy committee receives a report from each region each month and i can assure you it always receives a lot of attention. all the members of the committee also get out to meet businesses themselves and that is why i am here in the north east for two days. the main subject of my speech tonight is the wider economy, and in particular the tale of two cycles – the downswing of the financial cycle and the upswing in the commodity price cycle. the economic environment in context but first,