A US insurance company that wishes to transact insurance business in the UK must apply to the PRA for?

To conduct insurance business in the UK, a US insurance company must seek authorisation from the Prudential Regulation Authority (PRA). This process is crucial as it ensures that the company meets the regulatory standards set by the PRA, which are aimed at ensuring the safety and soundness of financial institutions. Authorisation involves a comprehensive evaluation of the company's financial health, governance structures, and business plans, ensuring the firm is capable of fulfilling its obligations to policyholders.

The term "authorisation" reflects the formal permission granted by the PRA after the company demonstrates compliance with the necessary prudential and conduct of business requirements. In contrast, options such as certification, incorporation, or recognition do not specifically pertain to the regulatory framework governing insurance operations in the UK.

Certification is typically associated with individual qualifications or compliance regarding certain standards and is not applicable at the company level for transacting insurance. Incorporation refers to the legal process of forming a company, which does not itself give permission to conduct insurance activities. Recognition usually signifies acknowledgment of a firm’s regulatory status but does not constitute the formal authorisation process required for performing regulated business in the UK.