U.K. life insurer, Friends Provident is the latest insurer to tap the market with a GBP380 million ($726 million) embedded-value securitization. The deal follows the Norwich Union Life & Pensions Limited GBP200 million securitization of future new business profits completed in October.

Regulatory challenges imposed over the last four years in the U.K. insurance industry have sent companies to seek funding beyond the traditional reinsurance borders and into the securitization realm (see ASR 6/17/02). The FSA in the last year worked to implement what's coined as the prudential directive, which aims to bring more clarity to the "realistic" position of insurance companies.

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