Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm; and
2. (2) in accordance with Insurance General Application 3, the Society, as modified by 5.

1.2

The changes to this rule are effective from 23:00 on 31/12/2020.

In this Part, the following definitions shall apply;

captive insurer

means a UK Solvency II firm owned by:

1. (1) a financial undertaking other than a UK Solvency II firm; or
2. (2) a group of UK Solvency II firms; or
3. (3) a non-financial undertaking;

the purpose of which is to provide insurance cover exclusively for the risks of the undertaking or undertakings to which it belongs, or of an undertaking, or undertakings, of the group of which that UK Solvency II firm is a member.

[Note: Art. 13(2) of the Solvency II Directive]

captive reinsurer

means a UK Solvency II firm that is a pure reinsurer owned by:

1. (1) a financial undertaking other than a UK Solvency II firm; or
2. (2) a group of UK Solvency II firms; or
3. (3) a non-financial undertaking;

the purpose of which is to provide reinsurance cover exclusively for the risks of the undertaking or undertakings to which it belongs or of an undertaking or undertakings of the group of which that pure reinsurer is a member.

[Note: Art.13(5) of the Solvency II Directive]