On 29 August 2014, the Prudential Regulation Authority (PRA) in the UK published an update note concerning Solvency II (2009/138/EC). The PRA expects that the note will be of most assistance to (re)insurers intending to use an internal model. The note focuses on the relationship between risk margin and calibration of non-hedgeable risks, and assessment of credit risk for matching adjustment portfolios. In the PRA's view, risk margin should not be viewed as a means of offsetting/reducing longevity risk calibrations when calculating the solvency capital requirement (SCR) or as a substitute for capital requirements. The PRA acknowledges that it has not finalised its position regarding assessment of credit risk by (re)insurers intending to use internal models, but also sets out some views in this regard.