Group Risk: Insurance Groups

Part

INSPRU Prudential Sourcebook for Insurers

Chapter

Group Risk: Insurance Groups

Printed on: 05/05/2024

Rulebook at: 19/06/2014

INSPRU 6

Group Risk: Insurance Groups

INSPRU 6.1

Application

31/12/2006

INSPRU 6.1.1

INSPRU 6.1 applies to an insurer that is either:

(1) a participating insurance undertaking; or

(2) a member of an insurance group or an MFHC conglomerate which is not a participating insurance undertaking and which is not:

(a) a non-EEA insurer; or

(b) a friendly society.

10/06/2013

INSPRU 6.1.2

INSPRU 6.1 does not apply to:

(1) a non-directive friendly society; or

(2) a Swiss general insurer; or

(3) an EEA-deposit insurer; or

(4) an incoming EEA firm; or

(5) an incoming Treaty firm.

01/04/2013

INSPRU 6.1.3

INSPRU 6.1 applies to a firm:

(1) on a solo basis, as an adjusted solo calculation, where that firm is a participating insurance undertaking; and

(2) on a group basis where that firm is a member of an insurance group or MFHC conglomerate.

10/06/2013

INSPRU 6.1.4

For the purposes of INSPRU 6.1, an insurer includes a friendly society (other than a non-directive friendly society) and a non-EEA insurer.

01/04/2013

Purpose

INSPRU 6.1.5

The purpose of this section is to implement the Insurance Groups Directive on supplementary supervision of firms in an insurance group, as amended by the Financial Groups Directive, the Reinsurance Directive and FICOD 1.

10/06/2013

INSPRU 6.1.5A

Notwithstanding the provisions of this Chapter, where a firm is subject to provisions under this Chapter in respect of an undertaking in INSPRU 6.1.17R (1)(bA) or (bB) and the PRA is the coordinator, the PRA may, on application by the firm and after consulting other relevant competent authorities, disapply such provisions of this Chapter with regard to that undertaking which are considered by the PRA as equivalent to those applying to the firm under GENPRU 3.1.

10/06/2013

INSPRU 6.1.6

INSPRU 6.1 sets out the sectoral rules for insurers for:

(1) firms that are participating insurance undertakings carrying out an adjusted solo calculation as contemplated by GENPRU 2.1.13R (2)

(2) insurance groups;

(3) insurance conglomerates ; and

(4) MFHC conglomerates.

10/06/2013

INSPRU 6.1.6A

In accordance with the definition, an insurance holding company ceases to be an insurance holding company if:

(1) it is a mixed financial holding company; and

(2) notice has been given in accordance with Article 4(2) of the Financial Groups Directive that the financial conglomerate of which it is a mixed financial holding company is a financial conglomerate;

otherwise it remains an insurance holding company for the purposes of this chapter.

01/04/2013

INSPRU 6.1.7

For a firm that is a participating insurance undertaking, the rules in INSPRU 6.1 out the minimum capital adequacy requirements for the firm itself. A firm that satisfies the test in INSPRU 6.1.9 R in relation to its group capital resources is deemed by GENPRU 2.1.13R (2) to be in compliance with the capital adequacy requirement set out in GENPRU 2.1.13R (1).

01/04/2013

Requirement to calculate GCR and GCRR

INSPRU 6.1.8

A firm must on a regular basis calculate the group capital resources (GCR) and group capital resources requirement (GCRR) of each undertaking referred to in INSPRU 6.1.17 R.

01/04/2013

Requirement to maintain group capital

INSPRU 6.1.9

Where a firm is the undertaking referred to in INSPRU 6.1.17R (1)(c) or INSPRU 6.1.17R (2), it must maintain at all times tier one capital resources and tier two capital resources of such an amount that its group capital resources are equal to or exceed its group capital resources requirement.

01/04/2013

INSPRU 6.1.10

A firm that is both:

(1) a composite firm; and

(2) an undertaking referred to in INSPRU 6.1.17R (1)(c) or INSPRU 6.1.17R (2);

must comply with INSPRU 6.1.9 R separately in respect of its long-term insurance business and its general insurance business.

01/04/2013

INSPRU 6.1.11

For the purposes of INSPRU 6.1.10 R, a firm must include in the calculation of the group capital resources and group capital resources requirement of its long-term insurance business the regulated related undertakings and ancillary services undertakings that are long-term insurance assets.

01/04/2013

INSPRU 6.1.12

INSPRU 1.5 sets out the detailed requirements for the separation of long-term and general insurance business.

01/04/2013

INSPRU 6.1.13

In order to comply with INSPRU 6.1.10 R, a composite firm will need to:

(1) establish the group capital resources requirement of its general insurance business and its long-term insurance business separately; and

(2) allocate its group capital resources between its general insurance business and its long-term insurance business so that:

(a) the group capital resources allocated to its general insurance business are equal to or in excess of the group capital resources requirement of its general insurance business; and

(b) the group capital resources allocated to its long-term insurance business are equal to or in excess of the group capital resources requirement of its long-term insurance business.

01/04/2013

INSPRU 6.1.14

Surplus group capital resources in the long-term insurance business cannot be used towards meeting the requirements of the general insurance business (see INSPRU 6.1.41 R) but surplus group capital resources in the general insurance business may be used towards meeting the amount of the group capital resources requirement that relates to the long-term insurance business.

01/04/2013

INSPRU 6.1.15

(1) Subject to INSPRU 6.1.27 R, a firm must ensure that at all times its capital resources are of such an amount that the group capital resources of each undertaking referred to in INSPRU 6.1.17 R (excluding those referred to in INSPRU 6.1.9 R) are equal to or exceed that undertaking's group capital resources requirement

(2) (1) does not apply to a pure reinsurer which became a firm in run-off before 10 December 2007 and whose Part 4A permission has not subsequently been varied to add back the regulated activity of effecting contracts of insurance.

01/04/2013

INSPRU 6.1.16

A firm is required to maintain adequate financial resources, taking into account any activity of other members of the group of which the firm is a member. INSPRU 6.1 sets out provisions that deal specifically with the way the activities of other members of the group should be taken into account. This results in the firm being required to hold sufficient capital resources so that the group capital resources are at least equal to the group capital resources requirement. However, the adequacy of the group capital resources needs to be assessed both by the firm and the PRA . Firms are required to carry out an assessment of the adequacy of their financial resources under the overall financial adequacy rule, the overall Pillar 2 rule and GENPRU 1.2.39 R, and the PRA will review this and may provide individual guidance on the amount and quality of capital resources the PRA considers adequate. As part of such reviews, the PRA may also form a view on the appropriateness of the group capital resources requirement and group capital resources. Where necessary, the PRA may also give individual guidance on the capital resources a firm should hold in order to comply with the requirement to maintain adequate financial resources expressed by reference to INSPRU 6.1.9 R and INSPRU 6.1.15 R.

19/06/2014

Scope - undertakings whose group capital is to be calculated and maintained

INSPRU 6.1.17

The undertakings referred to in INSPRU 6.1.8 R, INSPRU 6.1.9 R, INSPRU 6.1.10 R and INSPRU 6.1.15 R are:

(1) for any firm that is not within (2), each of the following:

(a) its ultimate insurance parent undertaking;

(b) its ultimate EEA insurance parent undertaking (if different to (a));

(ba) the ultimate mixed financial holding company at the head of a MFHC conglomerate of which the firm is a member;

(bb) the ultimate EEA mixed financial holding company at the head of a MFHC conglomerate of which the firm is a member (if different from (ba)); and

(2) the firm itself, where the firm is a participating insurance undertaking and is:

(a) a non-EEA insurer; or

(b) a friendly society.

26/05/2014

INSPRU 6.1.18

Article 3(3) of the Insurance Groups Directive allows an undertaking to be excluded from supplementary supervision if:

(1) its head office is in a non-EEA State where there are legal impediments to the transfer of the necessary information; or

(2) in the opinion of the competent authority responsible for exercising supplementary supervision, having regard to the objectives of supplementary supervision:

(a) its inclusion would be inappropriate or misleading; or

(b) it is of negligible interest.

01/04/2013

INSPRU 6.1.19

If an application is made for a waiver contemplated by Article 3(3) of the Insurance Groups Directive, it is the policy of the PRA to consider the effect, in the circumstances described in INSPRU 6.1.18 G, of granting a waiver allowing the exclusion of a related undertaking from the calculation of group capital resources and the group capital resources requirement required by INSPRU 6.1.8 R.

10/06/2013

INSPRU 6.1.20

Examples of related undertakings which may be excluded from supplementary supervision by Article 3(3) of the Insurance Groups Directive include insurance holding companies in the insurance group that are not the ultimate insurance parent undertaking or, if different, the ultimate EEA insurance parent undertaking of a firm.

01/04/2013

INSPRU 6.1.21

If more than one member of the insurance group is to be excluded in the circumstances described in INSPRU 6.1.18G (2)(b), they may only be excluded if, considered together, they are of negligible interest in the context of the insurance group.

01/04/2013

INSPRU 6.1.22

When giving a waiver in the circumstances described in INSPRU 6.1.18 G, the PRA may impose a condition requiring the firm to provide information about any member of the insurance group excluded pursuant to a waiver granted in the circumstances described in INSPRU 6.1.18 G.

01/04/2013

Optional alternative method of calculation for firms subject to supplementary supervision by another EEA competent authority

INSPRU 6.1.23

If the competent authority in an EEA State other than the United Kingdom has agreed to be the competent authority responsible for exercising supplementary supervision of an insurance group or an MFHC conglomerate of which a firm is a member under Article 4(2) of the Insurance Groups Directive, the firm may prepare the calculations required under INSPRU 6.1.8 R in relation to the ultimate EEA insurance parent undertaking or ultimate EEA mixed financial holding company in accordance with the requirements of supplementary supervision in that EEA State.

10/06/2013

INSPRU 6.1.24

The PRA will notify the firm if it has reached agreement with the competent authority in an EEA State other than the United Kingdom in accordance with Article 4(2) of the Insurance Groups Directive.

01/04/2013

Non-EEA ultimate insurance parent undertakings or non-EEA ultimate mixed financial holding companies

INSPRU 6.1.25

Where the ultimate insurance parent undertaking or ultimate mixed financial holding company of a firm has its head office in a non-EEA State, the firm may:

(1) calculate the group capital resources and the group capital resources requirement of its ultimate insurance parent undertaking or ultimate mixed financial holding company in accordance with accounting practice applicable for the purposes of the regulation of insurance undertakings in the state or territory of the head office of the ultimate insurance parent undertaking or ultimate mixed financial holding company adapted as necessary to apply the general principles set out in Annex I (1) paragraphs B, C and D of the Insurance Groups Directive; and

(2) elect (see INSPRU 6.1.26 R) to carry out the calculation referred to in (1) in accordance with the accounting consolidation method set out in Annex I (3) of the Insurance Groups Directive.

10/06/2013

INSPRU 6.1.26

A firm may elect to use the calculation method referred to in INSPRU 6.1.25R (2) if it has made the election by written notice to the PRA in a way that complies with the requirements for written notice in Notifications 7 of the PRA Rulebook.

19/06/2014

INSPRU 6.1.27

INSPRU 6.1.15 R does not apply:

(1) in respect of the group capital resources of a firm's ultimate insurance parent undertaking if that ultimate insurance parent undertaking has its head office in a non-EEA State; or

(2) in respect of the group capital resources of the ultimate mixed financial holding company at the head of the MFHC conglomerate of which the firm is a member if that ultimate mixed financial holding company has its head office in a non-EEA State.

10/06/2013

Proportional holdings

INSPRU 6.1.28

Subject to INSPRU 6.1.30 R and INSPRU 6.1.31 R, when calculating group capital resources and the group capital resources requirement of an undertaking in INSPRU 6.1.17 R, a firm must take only the relevant proportion of the following items ("calculation items") into account:

(1) the solo capital resources of a regulated related undertaking;

(2) the assets of a regulated related undertaking which are required to be deducted as part of the calculation of group capital resources; and

(3) the individual capital resources requirement of a regulated related undertaking.

01/04/2013

INSPRU 6.1.29

In INSPRU 6.1.28 R, the relevant proportion is either:

(1) the proportion of the total number of issued shares in the regulated related undertaking held, directly or indirectly, by the undertaking in INSPRU 6.1.17 R; or

(2) where a consolidation Article 12(1) relationship exists between related undertakings within the insurance group or MFHC conglomerate, such proportion as the PRA determines in accordance with Article 28(5) of the Financial Groups Directive and Regulation 15 of the Financial Groups Directive Regulations.

10/06/2013

INSPRU 6.1.30

Where the undertaking in INSPRU 6.1.17 R is a firm, if the individual capital resources requirement of a regulated related undertaking that is a subsidiary undertaking and not an insurer exceeds the solo capital resources of that undertaking less the amount calculated in INSPRU 6.1.74 R(if any), the full amount of the calculation items of that regulated related undertaking less the amount in INSPRU 6.1.74R (3) must be taken into account in the calculation of group capital resources and the group capital resources requirement.

01/04/2013

INSPRU 6.1.31

Except where INSPRU 6.1.30 R applies, if the individual capital resources requirement of a regulated related undertaking that is a subsidiary undertaking of the undertaking in INSPRU 6.1.17 R exceeds its solo capital resources, the full amount of the calculation items of that regulated related undertaking must be taken into account in the calculation of group capital resources and the group capital resources requirement.

01/04/2013

INSPRU 6.1.32

For the purposes of INSPRU 6.1.10 R, where a composite firm that is an undertaking in INSPRU 6.1.17R (1)(c) or (2):

(1) holds directly or indirectly shares in a regulated related undertaking; and

(2) the shares in (1) are held partly by its long-term insurance business and partly by its general insurance business;

(3) the relevant proportion of the calculation items calculated in accordance with INSPRU 6.1.29 R, subject to INSPRU 6.1.30 R and INSPRU 6.1.31 R, must be allocated between the long-term insurance business and general insurance business in proportion to their respective holdings, directly or indirectly, in the shares in that regulated related undertaking.

01/04/2013

Calculation of the GCRR

INSPRU 6.1.33

Subject to INSPRU 6.1.23 R and INSPRU 6.1.25 R, a firm must calculate the group capital resources requirement of an undertaking in INSPRU 6.1.17 R as the sum of the individual capital resources requirement of that undertaking and the individual capital resources requirement of each of its regulated related undertakings.

01/04/2013

INSPRU 6.1.34

For the purposes of INSPRU 6.1, an individual capital resources requirement is:

(1) in respect of any insurer:

(a) its capital resources requirement calculated in accordance with GENPRU 2.1; less

(b) where the capital resources requirements of both the insurer and its insurance parent undertaking that is an insurer include with-profits insurance capital components, any element of double-counting that may arise from the aggregation of the individual capital resources requirements for the purposes of INSPRU 6.1.33 R;

(2) in respect of an EEA insureror an EEA pure reinsurer, the equivalent of the capital resources requirement as calculated in accordance with the applicable requirements in its Home State;

(3) in respect of an EEA ISPV, the solo capital resources requirement that applies to the ISPV under the sectoral rules for the insurance sector of the member State of the competent authority that authorised the ISPV;

(4) in respect of an insurance undertaking that is not within (1), (2) or (3) and whose head office is in a designated State or territory, either:

(a) its proxy capital resources requirement; or

(b) the solo capital resources requirement that applies to it under the sectoral rules for the insurance sector of the designated State or territory;

(5) in respect of an insurance undertaking within (4) which is not subject to a solo capital resources requirement under the sectoral rules for the insurance sector of that designated State or territory, its proxy capital resources requirement;

(6) in respect of an insurance undertaking that is not within (1) to (5), its proxy capital resources requirement;

(7) in respect of an insurance holding company or mixed financial holding company, zero;

(8) [intentionally blank]

(9) in respect of a regulated entity (excluding an insurance undertaking), its solo capital resources requirement;

(10) in respect of an asset management company, the solo capital resources requirement that would apply to it if, in connection with its activities, it were treated as being in the investment services sector; ;and

(11) in respect of a financial institution that is not a regulated entity (including a financial holding company), the solo capital resources requirement that would apply to it if, in connection with its activities, it were treated as being within the banking sector.

(12) [deleted]

10/06/2013

INSPRU 6.1.34A

For the purposes of INSPRU 6.1.34R (4)(b), where the solo capital resources requirement under the sectoral rules for the insurance sector in a designated State or territory is ascertained by reference to the trigger for regulatory intervention, the PRA considers that the solo capital resources requirement of the insurance undertaking in such a designated State or territory will generally correspond to the highest point at which any regulatory or corrective action is triggered or which is at least comparable to the capital resources requirement which would apply if the insurance undertaking were an insurer.

01/04/2013

INSPRU 6.1.35

INSPRU 6.1.34R sets out the rules for calculating an insurer's individual capital resources requirement. Among other things, this allows the use of local rules for related entities in designated states and territories. Paragraphs 6.5 and 6.6 of GENPRU 3 Annex 1R include the equivalent provisions for related undertakings in the banking sector and investment services sector. The provisions of paragraphs 6.4 to 6.6 extend to the calculation of solo capital resources, with the references to sectoral rules in paragraphs 1.2, 2.3 and 3.2 of GENPRU 3 Annex 1R (that is, the capital resources requirement of a related undertaking must be met by capital resources that are eligible under the relevant sectoral rules).

01/04/2013

Calculation of GCR

INSPRU 6.1.36

For the purposes of INSPRU 6.1.8 R and subject to INSPRU 6.1.23 R and INSPRU 6.1.25 R, a firm must calculate the group capital resources of an undertaking in INSPRU 6.1.17 R in accordance with the table in INSPRU 6.1.43 R, subject to the limits in INSPRU 6.1.45 R.

01/04/2013

INSPRU 6.1.37

For the purposes of INSPRU 6.1, the following expressions when used in relation to either an undertaking in INSPRU 6.1.17 R or a regulated related undertaking which is not subject to the capital resources table, are to be construed as if that undertaking were required to calculate its capital resources in accordance with the capital resources table, but with such adjustments being made to secure that the undertaking's calculation of its solo capital resources complies with the relevant sectoral rules applicable to it:

(1) tier one capital resources;

(2) tier two capital resources;

(3) upper tier two capital resources;

(4) lower tier two capital resources;

(5) innovative tier one capital resources; and

(6) core tier one capital.

01/04/2013

INSPRU 6.1.38

For the purposes of INSPRU 6.1.37 R, the sectoral rules applicable to:

(1) an insurance holding company whose main business is to acquire and hold participations in subsidiary undertakings which are either exclusively or mainly reinsurance undertakings are the sectoral rules that would apply to it if, in connection with its activities, it were treated as a pure reinsurer;

(2) an insurance holding company not within (1) or a mixed financial holding company, are the sectoral rules that would apply to it if, in connection with its activities, it were treated as an insurer;

(3) an asset management company are the sectoral rules that would apply to it if, in connection with its activities, it were treated as an investment firm; and

(4) subject to INSPRU 6.1.39 R, a financial institution, that is not a regulated entity, are the sectoral rules that would apply to it if, in connection with its activities, it were treated as being within the banking sector.

10/06/2013

INSPRU 6.1.39

Where a financial institution, that is not a regulated entity, has invested in tier one capital or tier two capital issued by a parent undertaking that is:

(1) an insurance holding company; or

(1A) a mixed financial holding company; or

(2) an insurer;

the sectoral rules that apply to that financial institution are the sectoral rules for the insurance sector.

10/06/2013

INSPRU 6.1.40

For the purposes of INSPRU 6.1.36 R, the capital resources of a financial institution within INSPRU 6.1.39 R that can be included in the calculations in INSPRU 6.1.48R (2), INSPRU 6.1.50R (2), INSPRU 6.1.53R (2), INSPRU 6.1.55R (2) and INSPRU 6.1.57R (2) are:

(1) the issued tier one capital or tier two capital of that financial institution held, directly or indirectly, by its parent undertaking referred to in INSPRU 6.1.39 R; and

(2) the lower of:

(a) the tier one capital or tier two capital issued by the parent undertaking referred to in INSPRU 6.1.39 R pursuant to the investment by the financial institution; and

(b) the tier one capital or tier two capital issued by the financial institution to raise funds for its investment in the capital resources of the parent undertaking referred to in (a).

01/04/2013

INSPRU 6.1.41

(1) In calculating group capital resources, a firm must exclude the restricted assets of a regulated related undertaking except insofar as those assets are available to meet the individual capital resources requirement of that regulated related undertaking.

(2) In (1), "restricted assets" means assets of a regulated related undertaking which are subject to a legal restriction or other requirement having the effect that those assets cannot be transferred or otherwise made available to another regulated related undertaking for the purposes of meeting its individual capital resources requirement without causing a breach of that legal restriction or requirement.

01/04/2013

INSPRU 6.1.42

For the purposes of INSPRU 6.1.41 R, in respect of an insurance undertaking that is a member of an insurance group or MFHC conglomerate, the assets of a long-term insurance fund are restricted assets within the meaning of INSPRU 6.1.41 R. Any excess of assets over liabilities in the long-term insurance fund may only be included in the calculation of the group capital resources up to the amount of the undertaking's individual capital resources requirement which relates to the long-term insurance business in respect of which that long-term insurance fund is held.

10/06/2013

INSPRU 6.1.42A

For the purposes of calculating group capital resources, a firm must exclude:

(1) the book value of any investment by a related undertaking of the undertaking in INSPRU 6.1.17 R in shares of, or loans to, an undertaking that is not a related undertaking, where that undertaking has invested in the capital resources of a regulated related undertaking of the undertaking in INSPRU 6.1.17 R; and

(2) any item of capital not in (1) to the extent that it is the result of or otherwise attributable to reciprocal financing arrangements entered into by the undertaking in INSPRU 6.1.17 R or by a related undertaking of an undertaking in INSPRU 6.1.17 R.

01/04/2013

INSPRU 6.1.42B

The Insurance Groups Directive gives an example of reciprocal financing as when an insurance undertaking, or any of its related undertakings, holds shares in, or makes loans to, another undertaking which, directly or indirectly, holds an element eligible for the solvency margin of the first undertaking. However, there are other instances of reciprocal financing, for example where a group undertaking provides a guarantee to an undertaking outside the group, in whole or partial reliance on which the non-group undertaking invests in or provides any kind of financial accommodation to support the capital resources of a group undertaking whose capital resources are relevant to the group capital resources calculation. INSPRU 6.1.42AR (2) requires that firms exclude from group capital resources those items of capital resulting from or attributable to such reciprocal financing arrangements.

01/04/2013

INSPRU 6.1.43

Table: Group capital resources

Stage

Related text

Total group tier one capital

INSPRU 6.1.48 R

Total group tier two capital

INSPRU 6.1.50 R

Group capital resources before deductions

C=(A+B)

Total deductions of inadmissible assets

INSPRU 6.1.59 R

Total deductions under the requirement deduction method from group capital resources

INSPRU 6.1.62 R

Total deductions of ineligible surplus capital*

INSPRU 6.1.65 R

Deduction of assets in excess of market risk and counterparty exposure limits*

INSPRU 6.1.70 R

Group capital resources

H=(C-(D+E+F*+G*))

* = section (F) of the table (the deductions for ineligible surplus capital) and section (G) of the table (assets in excess of market risk and counterparty exposure limits) only apply and are required to be calculated for the purposes of the adjusted solo calculation of an undertaking in INSPRU 6.1.17 R that is a participating insurance undertaking.

01/04/2013

Notification of issuance of capital instruments

INSPRU 6.1.43A

This section applies to a firm if another member of its group intends to issue a capital instrument on or after 1 March 2012 for inclusion in the group capital resources of the firm or its ultimate EEA insurance parent undertaking.

01/04/2013

INSPRU 6.1.43B

A firm must notify the PRA in writing of the intention of another member of its group which is not a firm to issue a capital instrument which it intends to include within its group capital resources, or the group capital resources of its ultimate EEA insurance parent undertaking, as soon as it becomes aware of the intention of the group undertaking. When giving notice, a firm must:

(1) provide details of the amount of capital to be raised through the intended issue and whether the capital is intended to be issued to external investors or within its group;

(2) identify the stage of the capital resources table the capital instrument is intended to fall within;

(3) include confirmation from a senior manager of the firm responsible for authorising the inclusion of the issue within group capital resources that the capital instrument complies with the rules applicable to instruments included in the stage of the capital resources table identified in (2); and

(4) provide details of any features of the capital instrument which are novel, unusual or different from a capital instrument of a similar nature previously issued by the firm or widely available in the market or not specifically contemplated by GENPRU 2.2.

This rule does not apply to a firm if a group undertaking intends to issue a capital instrument listed in INSPRU 6.1.43E R.

01/04/2013

INSPRU 6.1.43C

A firm must provide a further notification to the PRA in writing including all the information required in INSPRU 6.1.43BR (1) to (4) as soon as any changes are proposed to the intended date of issue, amount of issue, type of investors, stage of capital or any other feature of the capital instrument to that previously notified to the PRA .

01/04/2013

INSPRU 6.1.43D

If a group undertaking proposes to establish a debt securities program for the issue of capital instruments which the firm intends to include within its group capital resources or the group capital resources of its ultimate EEA insurance parent undertaking, it must:

(1) notify the PRA of the establishment of the program; and

(2) provide the information required by INSPRU 6.1.43BR (1) to (4)

as soon as it becomes aware of the proposed establishment. The PRA must be notified of any changes, in accordance with INSPRU 6.1.43C R.

01/04/2013

INSPRU 6.1.43E

The capital instruments to which INSPRU 6.1.43B R does not apply are;

(1) ordinary shares issued by a group undertaking which

(a) are the most deeply subordinated capital instrument issued by that group undertaking;

(b) meet the criteria set out in GENPRU 2.2.83R (2) and (3); and

(2) debt instruments issued from a debt securities program established by a group undertaking, provided that program was notified to the PRA prior to its first draw down in accordance with INSPRU 6.1.43D R; and

(3) capital instruments which are not materially different in terms of their characteristics and eligibility for inclusion in a particular tier of capital to capital instruments previously issued by that group undertaking and included in the group capital resources of the firm or the group capital resources of its ultimate EEA insurance parent undertaking.

01/04/2013

INSPRU 6.1.43F

A firm must notify the PRA in writing, no later than the date of issue, of the intention of a group undertaking to issue a capital instrument listed in INSPRU 6.1.43E R which the firm intends to include within its group capital resources or the group capital resources of its ultimate EEA insurance parent undertaking. When giving notice a firm must

(1) provide the information set out at INSPRU 6.1.43BR (1) to (3); and

(2) confirm that the terms of the capital instrument have not changed since the previous issue of that type of capital instrument by that group undertaking.

01/04/2013

Calculation of GCR - Limits on the use of different forms of capital

INSPRU 6.1.44

As the various components of capital differ in the degree of protection that they offer the insurance group or MFHC conglomerate, restrictions are placed on the extent to which certain types of capital are eligible for inclusion in the group capital resources of the undertaking in INSPRU 6.1.17 R. These restrictions are set out in INSPRU 6.1.45 R.

10/06/2013

INSPRU 6.1.45

(1) For the purposes of INSPRU 6.1.9 R, INSPRU 6.1.10 R and INSPRU 6.1.15 R, a firm must ensure that at all times its tier one capital resources and tier two capital resources are of such an amount that the group capital resources of the undertaking in INSPRU 6.1.17 R comply with the following limits:

(a) (P - Q) >= ½ (R - S);

(b) (P - Q + T - W) >= ¾ (R - S);

(d) Q <= 15% of P;

(e) T <= P; and

(f) W <= ½ P

(2) For the purposes of INSPRU 6.1.9 R and INSPRU 6.1.10 R, a firm must ensure that at all times its tier one capital resources and tier two capital resources are of such an amount that its group capital resources comply with the following limit, subject to (4)
(P - Q + T) = 1/3 X + (R - S - U - X).

(3) For the purposes of (1) and (2):

(a) P is the total group tier one capital of the undertaking in INSPRU 6.1.17 R;

(b) Q is the sum of the innovative tier one capital resources calculated in accordance with INSPRU 6.1.53 R;

(d) S is the sum of all the with-profits insurance capital components of an undertaking in INSPRU 6.1.17 R that is an insurer and each of its regulated related undertakings that is an insurer;

(e) T is the total group tier two capital of the undertaking in INSPRU 6.1.17 R;

(f) U is the sum of all the resilience capital requirements of an undertaking in INSPRU 6.1.17 R that is an insurer and each of its regulated related undertakings that is an insurer;

(g) V is the sum of all the core tier one capital calculated in accordance with INSPRU 6.1.55 R;

(h) W is the sum of the lower tier two capital resources calculated in accordance with INSPRU 6.1.57 R; and

(i) X is the MCR of the firm less its resilience capital requirement, if any.

(4) For the purposes of (2):

(a) INSPRU 6.1.45R (1)(a) does not apply;

(b) the innovative tier one capital of the firm or its regulated related undertakings that meets the conditions for it to be upper tier two capital may be included as upper tier two capital for the purpose of the calculation in INSPRU 6.1.50 R; and

(i) any amount by which the total group tier two capital exceeds the group capital resources of the firm less any innovative tier one capital excluded by (b); and

(ii) any amount by which the sum of lower tier two capital resources calculated in accordance with INSPRU 6.1.57 R exceeds one third of the group capital resources of the firm less any innovative tier one capital excluded by (b).

01/04/2013

INSPRU 6.1.46

The amount of any capital item excluded from group capital resources under INSPRU 6.1.45R (1)(d) may form part of total group tier two capital calculated in accordance with INSPRU 6.1.50 R subject to the limits in INSPRU 6.1.45R (1)(e) and INSPRU 6.1.45R (1)(f).

01/04/2013

INSPRU 6.1.47

For the purposes of INSPRU 6.1.10 R, a firm must ensure that the tier one capital resources and tier two capital resources of each of its long-term insurance business and its general insurance business are of such an amount that the group capital resources of each its long-term insurance business and its general insurance business comply with the limits in INSPRU 6.1.45 R separately for each type of business.

01/04/2013

Calculation of GCR - Total group tier one capital

INSPRU 6.1.48

For the purposes of INSPRU 6.1.43 R, the total group tier one capital of an undertaking in INSPRU 6.1.17 R is the sum of:

(1) the tier one capital resources of the undertaking in INSPRU 6.1.17 R; and

(2) subject to INSPRU 6.1.40 R, the tier one capital resources of each of the related undertakings of that undertaking that is a regulated related undertaking after the deduction in INSPRU 6.1.49 R.

01/04/2013

INSPRU 6.1.49

The deduction referred to in INSPRU 6.1.48 R is the sum of:

(1) the book value of the investment by the undertaking in INSPRU 6.1.17 R in the tier one capital resources of each of its related undertakings that is a regulated related undertaking; and

(2) the book value of the investments by related undertakings of the undertaking in INSPRU 6.1.17 R in the tier one capital resources of the undertaking in INSPRU 6.1.17 R and each of its related undertakings that is a regulated related undertaking.

01/04/2013

Calculation of GCR - Total group tier two capital

INSPRU 6.1.50

For the purposes of INSPRU 6.1.43 R, the total group tier two capital of an undertaking in INSPRU 6.1.17 R is the sum of:

(1) the upper tier two capital resources and the lower tier two capital resources of that undertaking; and

(2) subject to INSPRU 6.1.40 R, the upper tier two capital resources and the lower tier two capital resources of each of the related undertakings of that undertaking that is a regulated related undertaking after the deduction in INSPRU 6.1.51 R.

01/04/2013

INSPRU 6.1.51

The deduction referred to in INSPRU 6.1.50 R is the sum of:

(1) the book value of the investments by the undertaking in INSPRU 6.1.17 R in the upper tier two capital resources and the lower tier two capital resources of each of its related undertakings that is a regulated related undertaking; and

(2) the book value of the investments by related undertakings of the undertaking in INSPRU 6.1.17 R in the upper tier two capital resources and the lower tier two capital resources of the undertaking in INSPRU 6.1.17 R and each of its related undertakings that is a regulated related undertaking.

01/04/2013

INSPRU 6.1.52

For the purposes of INSPRU 6.1.50R (2), the limits in GENPRU 2.2.37 R apply to the upper tier two capital resources and the lower tier two capital resources of any regulated related undertaking that is an insurer. Similar limits may apply to other regulated related undertakings under the relevant sectoral rules.

01/04/2013

Calculation of GCR - Innovative tier one capital resources, lower tier two capital resources and core tier one capital

INSPRU 6.1.53

For the purposes of INSPRU 6.1.45R (4)(b), the innovative tier one capital resources is the sum of:

(1) the innovative tier one capital resources of the undertaking in INSPRU 6.1.17 R; and

(2) subject to INSPRU 6.1.40 R, the innovative tier one capital resources of each of the related undertakings of that undertaking that is a regulated related undertaking after the deduction in INSPRU 6.1.54 R.

01/04/2013

INSPRU 6.1.54

The deduction referred to in INSPRU 6.1.53 R is the sum of:

(1) the book value of the investments by the undertaking in INSPRU 6.1.17 R in the innovative tier one capital resources of each of its related undertakings that is a regulated related undertaking; and

(2) the book value of the investments by related undertakings of the undertaking in INSPRU 6.1.17 R in the innovative tier one capital resources of the undertaking in INSPRU 6.1.17 R and each of its related undertakings that is a regulated related undertaking.

01/04/2013

INSPRU 6.1.55

For the purposes of INSPRU 6.1.45R (3)(g), the core tier one capital is the sum of:

(1) the core tier one capital of the undertaking of INSPRU 6.1.17 R; and

(2) subject to INSPRU 6.1.40 R, the core tier one capital of each of the related undertakings of that undertaking that is a regulated related undertaking after the deduction in INSPRU 6.1.56 R.

01/04/2013

INSPRU 6.1.56

The deduction referred to in INSPRU 6.1.55 R is the sum of:

(1) the book value of the investments by the undertaking in INSPRU 6.1.17 R in the core tier one capital of each of its related undertakings that is a regulated related undertaking; and

(2) the book value of the investments by related undertakings of the undertaking in INSPRU 6.1.17 R in the core tier one capital of the undertaking in INSPRU 6.1.17 R and each of its related undertakings that is a regulated related undertaking.

01/04/2013

INSPRU 6.1.57

For the purposes of INSPRU 6.1.45R (3)(h), the lower tier two capital resources is the sum of:

(1) the lower tier two capital resources of the undertaking in INSPRU 6.1.17 R; and

(2) subject to INSPRU 6.1.40 R, the lower tier two capital resources of each of the related undertakings of that undertaking that is a regulated related undertaking after the deduction in INSPRU 6.1.58 R.

01/04/2013

INSPRU 6.1.58

The deduction referred to in INSPRU 6.1.57 R is the sum of:

(1) the book value of the investments by the undertaking in INSPRU 6.1.17 R in the lower tier two capital resources of each of its related undertakings that is a regulated related undertaking; and

(2) the book value of the investments by related undertakings of the undertaking in INSPRU 6.1.17 R in the lower tier two capital resources of the undertaking in INSPRU 6.1.17 R and each of its related undertakings that is a regulated related undertaking.

01/04/2013

Calculation of GCR - Inadmissible assets

INSPRU 6.1.59

For the purpose of INSPRU 6.1.43 R, a firm must deduct from the group capital resources before deduction (calculated at stage C in the table in INSPRU 6.1.43 R) of the undertaking in INSPRU 6.1.17 R, the value of all assets of the undertaking in INSPRU 6.1.17 R and each of its regulated related undertakings that are not admissible assets as set out in INSPRU 6.1.60 R.

01/04/2013

INSPRU 6.1.60

For the purposes of INSPRU 6.1.59 R, an asset is not an admissible asset if:

(1) in respect of a regulated related undertaking or undertaking in INSPRU 6.1.17 R that is an insurer (other than a pure reinsurer), it is not an admissible asset as listed in GENPRU 2 Annex 7;

(2) in respect of a regulated related undertaking or undertaking in INSPRU 6.1.17 R that is a pure reinsurer, the holding of the asset is inconsistent with compliance by that undertaking with INSPRU 3.1.61A R; or

(3) in respect of a regulated related undertaking or undertaking in INSPRU 6.1.17 R that is not an insurer, it is an asset of the undertaking that is not admissible for the purpose of calculating that undertaking's solo capital resources in accordance with the sectoral rules applicable to it.

01/04/2013

INSPRU 6.1.61

For the purposes of INSPRU 6.1.60R (3), the sectoral rules applicable to:

(1) an asset management company are the sectoral rules that would apply to it if, in connection with its activities, it were treated as an investment firm; and

(2) a financial institution that is not a regulated entity are the sectoral rules that would apply to it if, in connection with its activities, it were treated as being within the banking sector.

01/04/2013

Calculation of GCR - Deductions under requirement deduction method from group capital resources

INSPRU 6.1.62

For the purposes of INSPRU 6.1.43 R, a firm must deduct from the group capital resources before deduction (calculated at stage C in the table in INSPRU 6.1.43 R) of an undertaking in INSPRU 6.1.17R (1)(a)(b) or (c) or (2), the sum of the value of the direct or indirect investments by the undertaking in INSPRU 6.1.17R (1)(a)(b) or INSPRU 6.1.17R (1)(c) or (2) in each of its related undertakings which is an ancillary services undertaking, calculated in accordance with INSPRU 6.1.63 R.

10/06/2013

INSPRU 6.1.63

The value of an investment in an undertaking referred to in INSPRU 6.1.62 R is the higher of the book value of the direct or indirect investment by the undertaking in INSPRU 6.1.17R (1)(a)(b) or (c) or (2) and the notional capital resources requirement of that undertaking.

10/06/2013

INSPRU 6.1.64

For the purposes of INSPRU 6.1.63 R, the notional capital resources requirement is:

(1) for an ancillary insurance services undertaking, zero;

(2) for any other ancillary services undertaking, the capital resources requirement that would apply to that undertaking, if it were a regulated related undertaking, in accordance with the sectoral rules applicable to a regulated related undertaking whose activities are closest in nature and scope to the activities of that undertaking.

01/04/2013

INSPRU 6.1.64A

For the purposes of INSPRU 6.1.43 R, in calculating the group capital resources of an undertaking in INSPRU 6.1.17R (1)(bA) or (bB) or in applying the provisions of INSPRU 6.1 for the purposes of calculating the conglomerate capital resources of a financial conglomerate under the provisions of GENPRU 3.1, a firm must, in accordance with GENPRU 3.1.30 R but subject to GENPRU 3.1.31 R, apply Method 2 (Deduction and Aggregation Method) or Method 1 (Accounting Consolidation Method) as set out in GENPRU 3 Annex 1 R to reflect direct or indirect investments by the undertaking in INSPRU 6.1.17R (1)(bA) or (bB) or by members of the financial conglomerate in each related undertaking which is an ancillary services undertaking.

10/06/2013

Calculation of GCR - Deductions of ineligible surplus capital

INSPRU 6.1.65

Where the undertaking in INSPRU 6.1.17 R is a participating insurance undertaking, the firm must, for the purposes of INSPRU 6.1.43 R, deduct from its group capital resources before deduction (calculated at stage C in the table in INSPRU 6.1.43 R) the sum of the ineligible surplus capital of each of its regulated related undertakings that is an insurance undertaking, calculated in accordance with INSPRU 6.1.67 R.

01/04/2013

INSPRU 6.1.66

The purpose of INSPRU 6.1.65 R is to ensure that, where the undertaking in INSPRU 6.1.17 R is a firm, group capital resources are not overstated by the inclusion of capital that, although surplus to the requirements of the relevant regulated related undertaking that is an insurance undertaking, cannot practically be transferred to support requirements arising elsewhere in the group. Therefore, ineligible surplus capital in a regulated related undertaking that is an insurance undertaking is deducted in arriving at group capital resources. Surplus capital in such a regulated related undertaking is regarded as transferable only to the extent that:

(1) it can be transferred without the regulated related undertaking breaching its own limits on the use of different forms of capital;

(2) it does not contain assets that are restricted within the meaning of INSPRU 6.1.41 R; and

(3) in the case of a regulated related undertaking that has a long-term insurance business, it does not contain any assets allocated to the capital resources of that undertaking for the purposes of the capital resources of its long-term insurance business meeting the capital resources requirement of its long-term insurance business.

01/04/2013

INSPRU 6.1.67

(1) For the purposes of INSPRU 6.1.65 R, the ineligible surplus capital of a regulated related undertaking that is an insurance undertaking is calculated by deducting B from A where:

(a) A is the regulatory surplus value of that insurance undertaking less any restricted assets of the insurance undertaking that have been excluded under INSPRU 6.1.41 R; and

(b) B is the transferable capital of that undertaking.

(2) If A minus B is negative, the ineligible surplus capital is zero.

01/04/2013

INSPRU 6.1.68

For the purposes of INSPRU 6.1.67R (1)(b), the transferable capital is calculated by deducting the sum of the following from the tier one capital resources of the regulated related undertaking that is an insurance undertaking:

(1) any restricted assets of that insurance undertaking that have been excluded under INSPRU 6.1.41 R;

(2) any tier one capital resources of that insurance undertaking that have been allocated towards meeting the individual capital resources requirement of its long-term insurance business; and

(3) the higher of:

(a) 50% of the individual capital resources requirement of the general insurance business of that insurance undertaking; and

(b) the individual capital resources requirement of the general insurance business of that insurance undertaking less the difference between E and F where:

(i) E is its tier two capital resources; and

(ii) F is the amount of its tier two capital resources that have been allocated towards meeting the individual capital resources requirement of its long-term insurance business.

Examples of transferable and ineligible surplus capital:

01/04/2013

INSPRU 6.1.69

Example 1

Share capital

Audited reserves

FFA

Tier two

Requirement

(i) Under INSPRU 6.1.68 R, transferable capital = tier one capital resources of 50, less the sum of:

(1) restricted assets excluded under INSPRU 6.1.41 R = (none);

(2) tier one capital resources allocated to the long-term insurance business = (none); and

(3) higher of (50% of 50 = 25 and 50 - 40 = 10) = (25) = (50 - 25) = 25

(ii) Under INSPRU 6.1.67 R, ineligible surplus capital = regulatory surplus value (40) less restricted assets excluded under INSPRU 6.1.41 R (0) less transferable capital (25) = 15.

Example 2

Share capital

Audited reserves

FFA (of which 5 is restricted)

Tier two

Requirement (of which 4 relates to the long-term insurance business)

(i) Under INSPRU 6.1.68 R, transferable capital = tier one capital resources of 60, less the sum of:

(1) restricted assets excluded under INSPRU 6.1.41 R = (5);

(2) tier one capital resources allocated to the long-term insurance business = (5); and

(3) the higher of (50% of 45 = 22.5; and 45 - 40 = 5) = (22.5)= 60 - 32.5 = 27.5

(ii) Under IINSPRU 6.1.67 R, ineligible surplus capital = regulatory surplus value (50) - restricted assets excluded under INSPRU 6.1.41 R of (5) - transferable capital (27.5) = 17.5.

Example 3

Share capital

Audited reserves

FFA (of which 0 is restricted)

Tier two (40, of which 5 is excluded at the solo level - see below)

Requirement (of which 25 relates to the long-term insurance business)

The requirement relating to the long-term insurance business is met by the FFA of 20 and tier two capital resources of 5. Of the remaining tier two capital resources of 35, 5 is excluded at the solo level because the tier one capital resources allocated to the general insurance business are 30.

(i) Under INSPRU 6.1.68 R, transferable capital = tier one capital resources of 50, less the sum of:

(1) restricted assets excluded under INSPRU 6.1.41 R = (none);

(2) tier one capital resources allocated to the long-term insurance business = (20); and

(3) the higher of (50% of 25 = 12.5; and 25 - (35 - 5) = -5) = (12.5)= 50 - 32.5 = 17.5.

(ii) Under INSPRU 6.1.67 R, ineligible surplus capital = regulatory surplus value (35) - restricted assets excluded under INSPRU 6.1.41 R of (0) - transferable capital (17.5) = 17.5.

01/04/2013

Calculation of GCR - Assets in excess of market risk and counterparty exposure limits

INSPRU 6.1.70

Subject to INSPRU 6.1.70A R, where the undertaking in INSPRU 6.1.17 R is a participating insurance undertaking, the firm must deduct from its group capital resources before deduction (calculated at stage C in the table in INSPRU 6.1.43 R) the assets in excess of market risk and counterparty exposure limits calculated in accordance with INSPRU 6.1.74 R.

01/04/2013

INSPRU 6.1.70A

Where the undertaking in INSPRU 6.1.17 R is a pure reinsurer that is a participating insurance undertaking, the firm must calculate assets in accordance with INSPRU 6.1.74A R and deduct from its group capital resources before deduction (calculated at stage C in the table in INSPRU 6.1.43 R) those assets the holding of which is inconsistent with compliance by that undertaking with INSPRU 3.1.61A R.

01/04/2013

INSPRU 6.1.71

For the purposes of INSPRU 6.1.43 R, where the undertaking in INSPRU 6.1.17 R is a participating insurance undertaking, the investments referred to in INSPRU 6.1.48 R and INSPRU 6.1.50 R are not subject to the market risk and counterparty exposure limits.

01/04/2013

INSPRU 6.1.72

The firm (A) must, subject to INSPRU 6.1.73 R, include in the calculation in INSPRU 6.1.74 R or, where A is a pure reinsurer, INSPRU 6.1.74A R each related undertaking (B) that is:

(1) a regulated related undertaking that is a subsidiary undertaking; or

(2) a related undertaking where the firm has elected to value the shares held in that undertaking by the firm in accordance with GENPRU 1.3.47 R for the purposes of calculating the tier one capital resources of the firm.

01/04/2013

INSPRU 6.1.73

The related undertakings in INSPRU 6.1.72 R need only be included in the calculation in INSPRU 6.1.74 R or INSPRU 6.1.74A R if:

(1) where B is a regulated related undertaking, the solo capital resources of that undertaking exceed its individual capital resources requirement; or

(2) where B is an undertaking in INSPRU 6.1.72R (2), its assets that fall within one or more of the categories in GENPRU 2 Annex 7 exceed its accounting liabilities.

01/04/2013

INSPRU 6.1.74

A's assets in excess of the market risk and counterparty exposure limits are calculated as follows:

(1) Subject to (2), a firm must apply the market risk and counterparty exposure limits in INSPRU 2.1.22R (3) to:

(a) where B is an insurer (other than a pure reinsurer), the admissible assets of B;

(b) where B is a pure reinsurer, the assets of that undertaking less those assets identified in INSPRU 6.1.60R (2) as not being admissible; and

(c) where B is a regulated related undertaking that is not an insurer, the assets of that undertaking less those assets identified in INSPRU 6.1.60R (3) as not being admissible assets.

(2) The market risk and counterparty exposure limits do not need to be applied to an undertaking in INSPRU 6.1.72R (2).

(3) Where the assets of B in INSPRU 6.1.74R (1) exceed the limits in INSPRU 2.1.22R (3), the assets of B in excess of the limits must be deducted by the firm from B's solo capital resources for the purposes of INSPRU 6.1.30 R.

(4) After the application of (1) and (2), the surplus assets of B are aggregated with the admissible assets of A, where the surplus assets of B are:

(a) where B is a firm (other than a pure reinsurer), the admissible assets of B that represent the amount by which the capital resources of B exceed its capital resources requirement, subject to INSPRU 6.1.77 R, and limited to the amount of transferable capital calculated in accordance with INSPRU 6.1.68 R;

(b) where B is a regulated related undertaking that is not in (a), the assets of the undertaking in INSPRU 6.1.74R (1)(b) or INSPRU 6.1.74R (1)(c) that represent the amount by which the solo capital resources of B exceed its individual capital resources requirement and, where B is an insurance undertaking that is not in (a), limited to the amount of transferable capital calculated in accordance with INSPRU 6.1.68 R; and

(c) where B is an undertaking in INSPRU 6.1.72R (2), the assets of the undertaking which represent those assets that fall within one or more of the categories in GENPRU 2 Annex 7 which exceed its accounting liabilities.

(5) The market risk and counterparty exposure limits are then applied to the aggregate of A's admissible assets and the surplus assets in INSPRU 6.1.74R (4).

01/04/2013

INSPRU 6.1.74A

A must apply INSPRU 3.1.61A R to the aggregate of:

(1) the assets of A, less any assets already identified in INSPRU 6.1.60R (2) as not being admissible; and

(2) the surplus assets of B calculated in accordance with INSPRU 6.1.74R (1) to INSPRU 6.1.74R (4) as if that rule applied to B.

01/04/2013

INSPRU 6.1.75

(1) Subject to (2), A must then deduct the amount by which the admissible assets aggregated in accordance with INSPRU 6.1.74R (5) exceed the market risk and counterparty exposure limits from A's group capital resources before deduction (calculated at stage C in the table in INSPRU 6.1.43 R) in accordance with INSPRU 6.1.70 R.

(2) Where A is a pure reinsurer, A must then deduct the amount of any assets identified by INSPRU 6.1.74A R as not complying with INSPRU 3.1.61A R in accordance with INSPRU 6.1.70A R.

01/04/2013

INSPRU 6.1.76

In relation to any of its regulated related undertakings that is not an insurer, A may modify the calculation in INSPRU 6.1.74 R by:

(1) omitting the calculation in INSPRU 6.1.74R (1) and INSPRU 6.1.74R (3); and

(2) aggregating all of the assets of B identified in INSPRU 6.1.74R (1)(c) as admissible assets with the admissible assets of A in INSPRU 6.1.74R (4).

01/04/2013

INSPRU 6.1.77

The admissible assets of either A or B that are part of a long-term insurance fund of A or B are excluded for the purposes of the calculation in INSPRU 6.1.74 R and INSPRU 6.1.74A R except insofar as those assets are available to meet the liabilities and capital resources requirement of that long-term insurance fund.

01/04/2013

INSPRU 6.1.78

If B is itself either a participating insurance undertaking or an insurance parent undertaking or mixed financial holding company, the admissible assets of B for the purposes of INSPRU 6.1.74R (1) must be calculated as in INSPRU 6.1.75 R but as if B were A.

10/06/2013