PPF confirms changes to s143 and s179 valuation assumptions

Following a four-week consultation, the PPF decided to adopt all the assumptions proposed in the consultation document.

It said a detailed consideration of the responses will be published in April.

The changes to the s143 and s179 assumptions are:

- Mortality PCMA00 (for males) and PCFA00 (for females), in each case with the medium cohort mortality improvement rates, and with a one per cent floor to the annual improvements.

- Discount rates to increase all existing rates by 0.3pc. This is at the high end of the spectrum of discount rate assumptions adopted by insurers.

It is proposed to keep all other assumptions unchanged.

The new assumptions will take effect from March 31 2008.

Guidance on the new assumptions can be found at:

Section 143 guidance

Section 179 guidance