Key takeaways

• The U.S. and the EU announced the completion of negotiations for an agreement with respect to three areas of prudential insurance supervision: reinsurance, group supervision and information exchange (the “Covered Agreement”).
• Under the Covered Agreement, reinsurance collateral requirements would be reduced and physical location requirements eliminated, provided the reinsurer meets minimum capital and prudential standards.
• The Covered Agreement emphasizes the significance of group-wide insurance and reinsurance supervision and contemplates the implementation of a group capital assessment.