Prudential Regulation Authority Rulebook

12.1

For the purposes of 8.2, 9.2, 9.3, 10.1, 10.2 and 11.1, amounts of premiums and claims must be:

1. (1) determined in accordance with the insurance accounts rules; and
2. (2) adjusted for transfers that were approved by the authority with responsibility for the approval of transfers of portfolios of contracts of insurance at the relevant time (or became effective where approval by an authority was not required) before the end of the financial year in question:
1. (a) to exclude any amount included in, or adjustment made to, premiums and claims to reflect the consideration for a transfer of contracts of insurance to or from the firm;
2. (b) to exclude premiums and claims (including amounts that arose in the financial year in question or previous financial years) which arose from contracts of insurance that have been transferred by the firm to another body; and
3. (c) to account for premiums and claims which arose from contracts of insurance that have been transferred to the firm from another body as if they were receivable by or payable by the firm (including where they arose prior to the date of transfer and were, in fact, receivable by or payable by the other body).

12.2

For both transfers to and from the firm, the consideration receivable or payable in respect of the transfer is excluded from premiums and claims in order to avoid double counting.

12.3

Where there has been a significant change in the business portfolio of the firm since the end of the financial year in question, the gross adjusted premiums amount and the gross adjusted claims amount must both be recalculated to take into account the impact of this change. The recalculation must take into account the requirements of the insurance accounts rules.