In term of Pillar 1 balance sheet in SII how exactly are UL pols treated? Assuming there are no guarantees and its just a simple UL pol is the following statement correct? The unit component is a hedgeable risk so that is just valued at market value and the sterling component needs to be projected and included as a BEL and RM. Thanks
April 2012 question 2 has a very detailed discussion of the treatment of UL under Solvency II. Best wishes Mark