On 14 August 2015, the PRA published a statement on its Solvency II News webpage regarding intra-group reinsurance under Solvency II.  This confirms the PRA's view that Solvency II requires that both entities' balance sheets are to be valued independently in such cases.  Additionally, the PRA commented that (a) the ceding entity should not take credit for any matching adjustment available to the reinsurer and (b) in the context of group solvency calculations, any matching adjustment benefit received by the cedant on its retained risks would be preserved.  However, the PRA also indicates that certain adjustment could be made to reflect the value of the reinsurer's matching adjustment benefits (which would otherwise be lost).