In a recent speech to the UK Parliament Group on Insurance and Financial Services, Mr Andrew Bulley, the Director of Life Insurance in the Prudential Regulation Authority (PRA) in the UK, commented on the negative impact of UK budgetary measures on the annuities market.  He noted that annuity sales are likely to be permanently and significantly reduced and that insurers will need to decide how best to adapt to a decline in sales volumes.  In terms of investment in infrastructure assets, Mr Bulley recognised the inherent advantages that such long term assets can offer to annuity writers.  From a supervisory perspective, Mr Bulley emphasised that the PRA does not promote one asset class over another; infrastructure is treated the same as any other asset class and that will continue to be the case under Solvency II.