S.I. No. 437/1986 - European Communities (Life Assurance Accounts, Statements and Valuations) Regulations, 1986

"the insurance undertaking" means an insurance undertaking the value of whose shares in or debts due or to become due from the dependant are being determined in accordance with Article 39;

"permitted limit" means, in relation to assets of a relevant description—

• (a) in the case of the insurance undertaking, or a dependant which carries on life assurance business, an amount equal to the percentage of the life assurance business amount applicable in relation to assets of that description in accordance with Article 49 (as applied in the case of a dependant pursuant to paragraph (2) of this Article);

• (b) in the case of the insurance undertaking, or a dependant which carries on non-life insurance business, an amount equal to the percentage of the non-life insurance business amount, as defined in Article 37 (1), applicable in relation to assets of that description in accordance with Article 49 (as applied pursuant to paragraph (2) of this Article); and

• (c) in the case of a dependant which is not an insurance undertaking, an amount equal to the percentages specified in Schedule 7, with respect to assets of that description, of the liabilities of the dependant, other than liabilities to the insurance undertaking or any other related company of the insurance undertaking;

and references to assets held by any company being of the same description as assets held by a dependant mean—

• (i) in relation to land of the dependant of a description specified in paragraph 1 of Schedule 7, any interest of that other company in that land,

• (ii) in relation to assets of the dependant of a description specified in paragraph 2 of Schedule 7, any debt due or to become due to that other company which is secured on the land on which the debt due or to become due to the dependant is secured, and

• (iii) in relation to assets of the dependent of a description specified in paragraphs 3 to 15 of Schedule 7, assets of that other company which, if held by the dependant, would be assets of that description.

• (6) Save as otherwise provided in paragraph 3 (5) of Schedule 6, references in this Article and in Schedule 6 to assets of the insurance undertaking being of a relevant class mean—

• (a) where this Article and Schedule 6 are being applied for the purpose of determining the value of a life assurance business asset of the insurance undertaking, assets of the insurance undertaking which are life assurance business assets, and

• (b) in any other case, assets of the insurance undertaking which are not life assurance business assets.

• (7) Where the insurance undertaking cannot reasonably ascertain in accordance with the provisions of this Article—

• (a) the value of any asset of the dependant, or

• (b) the amount of the permitted limit applicable in relation to any asset or category of assets of the dependant,

that asset or that part of those assets shall be left out of account in determining the value of the assets of the dependant under this Article.

41 Debts and other rights.

41.

41. (1) The value of any debt due, or to become due, to an undertaking, other than a debt to which Article 39 (3), paragraph (2), (3) or (4) of this Article or Article 46 or 48 applies, shall be—

• (a) in the case of any such debt which is due, or will become due, within twelve months of the relevant date (including any debt which would become due within that period if the undertaking were to exercise any right to which it is entitled to require payment of the same), the amount which can reasonably be expected to be recovered in respect of that debt (due account being taken of any security being held in respect thereof); and

• (b) in the case of any other such debt, the amount which would reasonably be paid by way of consideration for an immediate assignment of the debt together with the benefit of any security held in respect thereof:

Provided that, in determining the amounts referred to in subparagraphs (a) and (b), no account shall be taken of any letter of credit.

• (2) The value of any debt due, or to become due, to the undertaking which is secured on a policy of insurance issued by the undertaking and which (together with any other debt secured on that policy) does not exceed the amount payable on a surrender of that policy at the relevant date shall be the amount of that debt.

• (3) Any debt due or to become due to the undertaking—

• (a) from an intermediary in respect of money advanced on account of commission to which that intermediary is not absolutely entitled at the relevant date, or

• (b) in respect of unpaid share capital of the company, or

• (c) under a letter of credit,

shall be left out of account for the purposes for which this Part applies.

• (4) The value of any debt due to, or other rights of, the undertaking under any contract of reinsurance to which the undertaking is a party (other than a debt to which Article 39 (3) applies) shall be the amount which can reasonably be expected to be recovered in respect of that debt or right.

42 Land.

42.

42. The value of any land of an undertaking (other than land held by the undertaking as security for a debt or to which Article 47 applies) shall be not greater than the amount which (after deduction of the reasonable expenses of sale) would be realised if the land were sold at a price equal to the most recent proper valuation of that land which has been provided to the undertaking and any such land of which there is no proper valuation shall be left out of account for the purposes for which this Part applies.

43 Equipment.

43.

43. (1) The value of any computer equipment of an undertaking—

• (a) in the financial year of the undertaking in which it is purchased, shall be not greater than three-quarters of the cost thereof to the undertaking;

• (b) in the first financial year thereafter, shall be not greater than one-half of that cost;

• (c) in the second financial year thereafter, shall be not greater than one-quarter of that cost; and

• (d) in any subsequent financial year, shall be left out of account for the purposes for which this Part applies.

• (2) The value of any office machinery (other than computer equipment), furniture, motor vehicles and other equipment of an undertaking, shall be, in the financial year of the undertaking in which it is purchased, not greater than one-half of the cost thereof and shall be, in any subsequent financial year, left out of account for the purposes for which this Part applies.

44 Unlisted securities.

44.

44. (1) This Article does not apply to the valuation of shares in a dependent of an undertaking.

• (2) The value of any unlisted security which is dealt in on a recognised stock exchange shall be an amount not greater than the middle market quotation.

• (3) The value of any unlisted equity share, other than a share to which paragraph (2) applies, shall be not greater than—

• (a) where the company in which the share is held has been carrying on business for more than three financial years, the multiple of the price earnings ratio for the relevant date (or, if no price earnings ratio has been published for that date, for the most recent date prior to that date for which a price earnings ratio has been published) and the proportionate amount attributable to that share of the average amount of the profits of the company for the last three financial years; and

• (b) where the company has been carrying on business for less than three but more than one financial year, the multiple of such price earnings ratio and the proportionate amount attributable to that share of the average amount of the profits of the company for its two financial years or the profits of the company in its only financial year (as the case may be).

• (4) For the pruposes of this Article th avrage amount of the profits of a compny forany specified years shall be the amount represented by th formula

where—

• (a) P is the aggregate amount of the profits of the company after provision for taxation in each of the specified years,

• (b) L is the aggregate amount of any losses made by the company after provision for taxation in any of the specified years in which there were no profits, and

• (c) Y is the number of years specified,

no account being taken of any profit or loss brought forward from any year preceding the specified years.

• (5) In this Article, the proportionate amount attributable to any share of the average amount or the amount of any profits of the company in which the share is held for any specified years shall be the amount which could reasonably be expected to be received in respect of that share if the average amount or the amount (as the case may be) of the profits in question were available for distribution by the company among its shareholders.

• (6) Where the value of any share would otherwise be determined in accordance with the provisions of paragraph (3) but cannot be so determined because the amount of the profits of, or the amount of losses incurred by, the company in the last financial year cannot be reasonably ascertained, then the value of that share shall be determined—

( a ) in the case of a company which has been carrying on business for not less than four financial years, by reference to the average amount of the profits of the company for the three financial years preceding the last financial year; and

( b ) in the case of a company which has been carrying on business for less than four but more than two financial years, by reference to the average amount or the amount (as the case may be) of the profits of the company in any specified years other than the last financial year.

• (7) Any share to be valued in accordance with paragraphs (3) to (6) shall be left out of account for the purposes for which this part applies if —

( a ) no amount is attributable thereto in accordance with paragraph (3),

( b ) the company in which the share is held has been carrying on business for less than one financial year, or

( c ) the value of the share cannot be ascertained in accordance with paragraphs (3) to (6) because the amount of the profits of, or the amount of the losses incurred by, the company in any of the specified years cannot reasonably be ascertained and no provision is made for its valuation in paragraph (6).

• (8) The value of any unlisted share other than one to which paragraph (2) or (3) applies shall be the amount which would reasonably be paid by way of consideration for an immediate transfer of that share.

• (9) If, in all the circumstances of the case, it appears that any share to be valued in acccordance with paragraphs (2) to (6) is of a lesser value than that amount, such lesser value shall be the value of the asset.

45 Recognised unit trusts.

45.

45. The value of any holding of units, or other beneficial interest, under a unit trust to which section 31 of the Capital Gains Tax Act, 1975 , as amended by section 34 of the Finance Act, 1977 , relates or under a unit trust which is a registered unit trust scheme within the meaning of section 3 of the Unit Trusts Act, 1972 shall be the price at which the managers under the unit trust would purchase the holding of units or other beneficial interest if required to do so.

46 Listed investments.

46.

46. (1) The value of any listed debenture which is not a debenture issued by a dependent of the undertaking, and of any listed share which is not a share in such a dependent nor a share in any body specified in Article 48 (2) ( a ), shall be the middle market quotation.

• (2) Where the listing of any listed debenture or listed share, the value of which falls to be determined in accordacne with this Article, was suspended at a relevant date, then for the purpose or purposes for which that date was the relevant date—

• (a) if that suspension was in force for a period in excess of ten days, that debenture or share shall be left out of account, and

• (b) if that suspension was in force for a period not exceeding ten days, the value of that debenture or share shall be the lower of—

• (i) the middle market quotation on the day before the day the suspension came into force, and

• (ii) the middle market quotation on the day after the day the suspension was terminated.

• (3) For the purposes of paragraph (2), a day which is a Saturday or a Sunday or a bank holiday shall be disregarded.

47 Life interests, reversionary interests etc.

47.

47. The value of any asset consisting of an interest in property which—

• (a) is determinable upon the death of any person or upon the happening of some other future event or at some future time or is a remainder, reversionary interest, right of fee subject to a life-rent or other future interest, whether vested or contingent, and

• (b) is not at lease or reversionary interest expectant upon the determination of a lease,

shall be the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof.

48 Other assets.

48.

48. (1) The value of any approved securities shall be—

• (a) in the case of a listed securities, the middle market quotation together with any interest accrued thereon;

• (b) in the case of securities which are not transferable, the amount payable on a surrender or redemption of such securities at the relevant date; and

• (c) in any other case, the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof.

• (2) The value of—

• (a) shares in any building society or industrial and provident society, and

• (b) share options and debenture options, not being traded options,

shall be the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof.

• (3) The value of traded options shall be the middle market quotation.

49 Assets to be taken into account only to a specified extent.

49.

49. (1) This Article shall not apply to any approved securities or to any interest accrued thereon except insofar as it relates to the limitations applied to any loans to, or deposits with any one approved financial institution specified in Schedule 7.

• (2) Assets or categories of assets of an undertaking of any of the descriptions specified in Schedule 7 shall be taken into account, for the purpose of representing the life assurance business amount, only to the extent that the value of those assets or categories of assets does not exceed—

• (a) for an individual asset of a description specified in column 1, Part I, an amount equal to the percentage of the life assurance business amount specified in column 2 for an asset of that description;

• (b) for the aggregate of assets of a description specified in column 1, Part I, an amount equal to the percentage of the life assurance business amount specified in column 3 for assets of that description;

• (c) for an individual asset of the description specified in column 1, Part II, an amount equal to the percentage of the net premium income of the undertaking specified in column 2 (other than premiums in respect of treaty reinsurance accepted) for the twelve months preceding the relevant date;

• (d) for the aggregate of the assets of the description specified in column 1, Part I, an amount equal to the percentage of the net premium income of the undertaking specified in column 3 (other than premiums in respect of treaty reinsurance accepted) for the twelve months preceding the relevant date);

• (3) In no case shall the aggregate of the assets of a description specified in column 1, Part III, of Schedule 7, exceed that proportion of the life assurance business amount specified in column 2 of that Part.

• (4) Without prejudice to paragraph (2) of this Article an undertaking may hold other assets not listed in this Part or in Schedule 7 or may hold amounts of those assets in Schedule 7 which exceed the percentage limits specified, if it so wishes, but the amount of such assets cannot be put forward by the undertaking as representing the life assurance business amount.

• (5) In this Article—

"life assurance business amount" means the aggregate of the undertaking's life assurance business liabilities less the aggregate of the following—

• (a) the amount of any life assurance business liabilities of the undertaking to related companies, other than life assurance liabilities, and

• (b) the value of the debts due or to become due to an other rights of the undertaking under contracts of reinsurance ceded by it (but excluding any rights of recovery in respect of life assurance liabilities already discharged by the undertaking) which are life assurance business assets of the undertaking, and

• (c) the amount of any liabilities of the undertaking in respect of designated contracts;

"the net premium income" of an undertaking for any specific period means the gross amounts, first recorded in the undertaking's books during that period as paid or due to the undertaking by way of premiums, less any rebates, refunds and commission so recorded during that period as allowed or paid on those gross amounts or on any such gross amounts so recorded in any previous period.

• (6) For the purposes of this Article, "designated contracts" shall be property linked contracts and such other contracts as the Minister may from time to time determine.

• (7) Where—

• (a) an asset (or group of assets) of an undertaking carrying on life assurance business is attributed by the undertaking partly to its life assurance business assets and partly to its other assets, and

• (b) by virtue of paragraph (2) there is a reduction in the extent to which that asset or group of assets is to be taken into account,

the reduction shall be in the same proportion as the attribution.

• (8) For the purposes of this Article, the amount of the liabilities of an undertaking shall be determined in accordance with Part IV.

PART VI. IMPLICIT ITEMS

50 Application.

50.

50. This Part relates to an undertaking which makes an application to the Minister under paragraph (e) of Article 17 (2) of the Regulations of 1984 and, in this Part, references to implicit items are to amounts relating to future profits, zillmerising and hidden reserves mentioned in that paragraph.

51 Valuation.

51.

51. (1) Implicit items shall have no value except with the consent of the Minister given by diretion in writing on an application made under paragraph (e) of Article 17 (2) of the Regulations of 1984. In pursuance of such a direction implicit items shall be valued in accordance with that paragraph and this Part of these Regulations.

• (2) Article 4 applies to a direction under this Article.

52 Information to be submitted.

52.

52. An application under paragraph (e) of Article 17 (2) of the Regulations of 1984 shall be accompanied by such information as may be requested by the Minister in order to enable him to decide whether a direction under Article 51 should be issued and in particular shall include the following—

( a ) in the case of a future profits item, a certificate signed by the appointed actuary confirming that the amount for which approval is sought does not exceed the lower of—

• (i) the amount calculated in accordance with Article 17 (2) ( e ) (i) of the Regulations of 1984 and this Part of these Regulations, and

• (ii) the present value of the profits that may be expected to arise in the future on the life assurance business in force on the valuation date;

• (b) in the case of zillmerising, a certificate from the appointed actuary confirming that the amount for which approval is sought has been calculated in accordance with Article 17 (2) (e) (ii) of the Regulations of 1984 and this Part of these Regulations.

53 Future profits: Items comprising the estimated annual profit.

53.

53. (1) For the purposes of Article 17 (2) (e) (i) of the Regulations of 1984 the estimated annual profit shall be taken to be one-fifth of the profits made in the life assurance business over the period of five years ("the relevant period") ending on the last day of the most recent financial year for which an investigation under Article 5 has been carried out, substantial items of an exceptional nature being excluded.

• (2) For the purposes of paragraph (i)—

• (a) Where an investigation under Article 5 has been carried out annually in relation to the relevant period, the profits made in life assurance business for any particular year of the relevant period shall be taken to be the surplus (if any) arising in the life assurance fund since the last such investigation, and the profits so made for that period shall be taken to be the aggregate of those surpluses less any deficiencies in the life assurance fund during that period;

• (b) where an undertaking has carried on life assurance business throughout the relevant period but investigations under Article 5 have not been conducted annually in that period, the profits so made for that period shall be taken to be the aggregate of surpluses arising in the life assurance fund since the last investigation preceding the commencement of the relevant period less any deficiencies in the life assurance fund since that last investigation, except that the surplus or deficiency arising in the period ending with the first investigation within the relevant period shall be proportionately reduced to allow for any period of time falling outside the relevant period;

• (c) where an undertaking has not carried on life assurance business throughout the relevant period, the profits made in life assurance business for the relevant period shall be taken to be the aggregate of any surpluses arising in the life assurance fund during that part of the relevant period for which life assurance business was carried on less any deficiencies in the life assurance fund during that part of that period.

54 Future profits: Average period left to run.

54.

54. (1) The average period left to run on policies at the date of calculation of the solvency margin required for the purposes of Article 17 (2) (e) (i) of the Regulations of 1984 shall be determined as the weighted average of the periods left to run on the policies in force at that date, appropriate allowance being made for premature termination of contracts.

• (2) For the purposes of paragraph (1), weighting shall be based on the net single premium attaching to such policies but undertakings may use a method of calculation which involves a degree of approximation where such method is shown to the Minister's satisfaction to give similar results.

• (3) Undertakings may dispense with the detailed requirements of paragraph (2) for classes of policies of minor importance, the results of which would have no significant effect on the average period to run for the undertaking concerned.

• (4) In paragraph (1) a "period to run" means—

• (a) for whole life assurances, the expectation of life,

• (b) for open ended whole-life assurance, the expectation of life,

• (c) for endowment assurances and pure endownments, the period to the fixed maturity date,

• (d) for flexible endowments, the period to the first date of a guaranteed cash option,

• (e) for temporary assurances, the period to the expiry date,

• (f) for deferred annuities with cash options, the period to the vesting date; where the annuity can be taken at any age falling within a prescribed range, the earliest date,

• (g) for deferred annuities without cash options, the expectation of life for the age attained,

• (h) for annuities in payment, the expectation of life; for temporary annuities, the period to the expiry date,

• (i) for group life schemes, the unexpired duration of the period for which the premium rates are guaranteed,

• (j) for group pension schemes,

• (i) by individual deferred annuity contracts, as under deferred annuities above,

• (ii) by deferred annuities under controlled funding, a period of 10 years,

• (iii) by deposit administration, a period of 10 years,

• (iv) by managed fund, a period of 10 years,

• (k) for permanent health insurance,

• (i) for individual policies, the period to the expiry date;

• (ii) for group contracts, the unexpired duration of the period for which the premium rates are guaranteed,

• (l) for capital redemption, the period to the fixed maturity date,

• (m) for income and growth bonds, the period to the expected date of surrender.

• (5) In relation to paragraph (4), subparagraph (c), (d), (e), (f), (h) and (k) (i), mortality during the term shall be covered by the adjustment for the premature termination of contracts.

• (6) Applications based on alternative definitions of the period to run shall be considered provided it can be shown that the definitions used in conunction with the allowance for premature termination may be expected to result in a conservation estimate of the average period to run.

55 Future profits: The multiplying factor.

55.

55. (1) The calculation of the multiplying factor referred to in Article 17 (2) (e) (i) of the Regulations of 1984 shall be based on the average period left to run on policies and on adjustments necessary to take account of premature termination of contracts.

• (2) The multiplying factor need not, however, be calculated where it is shown to the satisfaction of the Minister that such factor would in any event be in excess of that necessary to generate an adequate implicit item to supplement the explicit elements referred to in Article 17 (2) (a) to (d) of the Regulations of 1984 for the purpose of meeting the requirements of Article 18 of those Regulations.

56 Zillmerising.

56.

56. (1) for the purposes of Article 17 (2) (e) (ii) of the Regulations of 1984 the "relevant capital sum" of life assurance activities shall mean—

• (a) for whole life assurances, the sum assured,

• (b) for policies where a sum is payable on maturity (including policies where a sum is also payable on earlier death), the sum payable on maturity,

• (c) for deferred annuities, the capitalised value of the annuity at the vesting date (or the cash option if it is greater),

• (d) for capital redemption contracts, the sum payable at the end of the contract period, and

• (e) for linked life assurance contracts, notwithstanding paragraphs (a) to (d) the lesser of—

• (i) the amount for the time being payable on death, and

• (ii) the aggregate of the value for the time being of the units allocated to the contract (or, where entitlement is not denoted by means of units, the value for the time being of any other measure of entitlement under the contract equivalent to units) and the total amount of the premiums remaining to be paid during such of the term of the contract as is appropriate for zillmerising or, if such premiums are payable beyond the age of seventy-five, until that age, excluding in all cases any vested reversionary bonuses and any capital sums for temporary assurances.

• (2) Where, under the contracts relating to any such business as is mentioned in paragraph (1), the payment of premiums is to stop before the sum assured becomes due, then, notwithstanding paragraph (1), the "relevant capital sum" of life assurance activities for the purpose of Article 17 (2) (e) (ii) of the Regulations of 1984 shall be taken to mean the mathematical reserves appropriate to the contracts in question at the end of the premium-paying term.

• (3) Reserves for vested reversionary bonuses shall not be regarded as mathematical reserves for the purpose of this Article.

57 Hidden reserves

57.

57. The implicit item relating to hidden reserves referred hidden reserves to in Article 17 (2) (e) (iii) of the Regulations of 1984 may be given its full value.

PART VII. REINSURANCE, MATCHING, LOCALISATION, DOCUMENTS OF TITLE, REGISTER.

58 Interpretation: Part VII.

58.

58. In this Part—

"assets" means—

• (a) in the case of non-linked contracts, designated assets as defined in Article 38 (9); and

• (b) in the case of linked contracts, linked assets as defined in Article 3.

"liabilities" and "reserves" refer to provision by an undertaking to cover liabilities arising under or in connection with contracts for life assurance, not being liabilities relating to life assurance business carried on outside the State.

59 Reinsurance.

59.

59. (1) Reserves may, subject to paragraph (2), be established and maintained after the deduction of reinsurance cessions, provided such reinsurance arrangements are acceptable to the Minister.

• (2) If more than 75 per cent of the gross premiums written in respect of any one of the individual categories of contracts set out in paragraph (4) is reinsured, then the primary insurer shall establish and maintian reserves, equivalent to a minimum of 25 per cent of gross premiums or 25 per cent of gross reserves (whichever is the greater) in that class and shall hold assets, localised in the State, representing that amount accordingly.

• (3) Where the reinsurance arrangements are not acceptable to the Minister he may require that, in respect of any one of the individual categories of contracts set out in paragraph (4), reserves be maintained before the deduction of reinsurance cessions.

• (4) The individual categories of contacts referred to in paragraphs (2) and (3) are—

• (i) life assurance contracts;

• (ii) general annuity contracts;

• (iii) pension business contracts;

• (iv) permanent health contracts;

• (v) capital redemption contracts.

60 Matching.

60.

60. (1) Where that part of the liabilities of an undertaking expressed as being payable in any particular currency exceeds 5 per cent of the undertaking's total liabilities the undertaking shall hold sufficient assets expresssed in or capable of being realised without exchange risk into that currency to cover at least 80 per cent of the undertaking's liabilities in that currency.

• (2) For the purposes of paragraph (1), an asset is capable of being realised without exchange risk into a currency if it is reasonably capable of being realised into that currency without risk that changes in exchange rates would reduce the cover of liabilities in that currency.

• (3) Assets held pursuant to paragraph (1) shall be localised in the State or in the country of the currency in which the liabilities are expressed.

61 Localisation of assets.

61.

61. (1) Notwithstanding the provisions of Article 60,

• (a) an Irish head office undertaking and a community branch undertaking shall establish and maintain assets in the State equal to not less than 80 per cent of its liabilities;

• (b) an Irish deposit undertaking, a Community deposit undertaking and an External branch undertaking shall establish and maintain assets in the State equal to not less than 100 per cent of its liabilities.

• (2) For the purposes of applying paragraph (1) to tangible assets, assets consisting of a claim against a debtor or a listed or unlisted investment, the following assets shall be regarded as being localised in the State—

• (a) a tangible asset, where it is situated in the State;

• (b) an asset consisting of a claim against a debtor—

• (i) in any case where the debtor is an incorporated company, where the head office of that company is situated in the State;

• (ii) in any case where the debtor is an unincorporated body of persons, where the body of persons is resident or ordinarily resident in the State;

• (iii) in any case where the debtor is an individual, where the individual is resident or ordinarily resident in the State;

• (c) an asset consisting of a listed investment, where it is listed or dealt in on the Stock Exchange-Irish;

• (d) an asset consisting of an unlisted investment issued by an incorporated company, where the head office of that company is situated in the State.

• (3) An asset consisting of an approved security issued and guaranteed by a Government outside the State shall not be regarded as localised in the State.

• (4) Notwithstanding the provisions of paragraph (1), an External branch undertaking and an Irish deposit undertaking shall also maintain assets in the State up to the amount of the guarantee fund required by Article 31 of the Regulations of 1984 and any excess either in the State or in another member State.

62 Documents of title.

62.

62. The documents of title of the assets localised in the State in accordance with Article 61 shall be held in the State and, in the case of an undertaking having its head office outside the State, the authorised agent shall have full authority to dispose of those assets in the namne of the undertaking in accordance with any direction from the Minister acting under the powers vested in him under the Insurance Acts and Regulations.

63 Register.

63.

63. (1) The register referred to in Article 23 (3) of the Regulations of 1984 shall be maintained at the principal office of the undertaking in the State and shall contain up-to-date details of the assets representing the reserves in respect of life assurance business carried on in the State.

• (2) The register shall be open for inspection by an officer or officers of the Minister during normal business hours.

SCHEDULE 1.

Summary of Accounts to be Completed Annually.

	Returns required in respect of Irish head undertaking	Returns required in respect of Irish head undertaking	Returns required in respect of Irish head undertaking	Returns required in respect of Irish head undertaking	Returns required in respect of—	Returns required in respect of—	Returns required in respect of—	Returns required in respect of—
	Global business	Irish business	Community business	Other	Community branch undertaking	External branch undertaking	Irish deposit undertaking	Community deposit undertaking
				Irish business	Irish and Global business	Irish Global and Community business	Irish business
1. Revenue account	*	*	*	*	*	*	*	*
2. Analysis of premiums and expenses	*	*	*	*	*	*	*	*
3. Analysis of claims	*	*	*	*	*	*	*	*
4. Summary of changes in business—O.B.	*	*	*	*	*	*	*	*
5. Summary of changes in business—I.B.	*	*	*	*	*	*	*	*
6. Analysis of new business—O.B.	*	*	*	*	*	*	*	*
7. Analysis of new business—I.B.	*	*	*	*	*	*	*	*
8. Expected income from designated non-linked assets	*	*	*	*	*	*	*	*
9. Analysis of designated non-linked fixed interest securities	*	*	*	*	*	*	*	*
10. Analysis of holdings in recognised unit trusts directly matching liabilities in respect of property linked benefits	*	*	*	*	*	*	*	*
11. Analysis of assets which are matching liabilities in respect of property linked benefits other than holding in recognised units trusts or internal linked funds	*	*	*	*	*	*	*	*
12. Balance sheet for internal linked funds	*	*	*	*	*	*	*	*
13. Analysis of units in internal linked funds	*	*	*	*	*	*	*	*
14. Revenue account for internal linked funds	*	*	*	*	*	*	*	*
15. Asset analysis	*	*	*	*	*	*	*	*
16. Life assurance business liabilities and margins	*	*	*	*	*	*	*	*
17. Liabilities which are not life assurance business liabilities	*	*	*	*	*	*	*	*
18. Statement of other income and expenditure	*	*	*	*	*	*	*	*
19. Statement of net assets		*	*	*	*	*	*	*
20. Statement of solvency	*	*	*	*	*	*	*	*
21. Employment statistics	*	*	*	*	*	*	*	*
23. Auditors' certificate	*	*	*	*	*	*	*	*
23. Directors' report	*	*	*	*	*	*	*	*
24. Appointed Actuary's certificate	*	*	*	*	*	*	*	*

*Denotes the forms to be completed by each undertaking (as appropriate).

SCHEDULE 2.

Forms of Account and Additional Information.

(Forms 1 to 21).

Completion of Forms

Currency

• (a) the value of any asset or liability expressed in a currency other than Irish pounds;

• (b) amounts of premiums and other income receivable in a currency other than Irish pounds;

• (c) amounts of claims and other expenditure payable in a currency other than Irish pounds.

• (2) Notwithstanding the provisions of subparagraph (1), amounts of income and expenditure in currencies other than Irish pounds may be expressed in Irish pounds using other bases of conversion provided that a note is included in the returns stating the bases employed.

Presentation of Amounts

• (2) Where any amount which is shown as brought forward from a previous year differs from the corresponding amount shown as carried forward from that year and the difference is not due solely to the fact that a different rate has been used to express other currencies in Irish pounds, a note of explanation shall be included in the return.

• (3) Amounts due to or from the undertaking shall be shown as gross amounts.

• (4) Amounts shall be shown to the nearer IR£1,000.

Management Services

• (a) the undertaking shall annex to Form 1 relating to its financial year during any part of which those arrangements are in force, and

• (b) the other company (being an undertaking) shall annex to Form 1 relating to its financial year during any part of which those arrangements are in force a statement that the arrangements have been so in force in the financial year and naming the parties to them.

Contingent Liabilities

• (2) The matters referred to in the following subparagraphs are to be stated by way of a note to Forms 16 and 17—

• (a) particulars of any charge on the assets of the undertaking to secure the liabilities of any other person (other than liabilities arising under a contract of insurance) including, where practicable, the amount secured;

• (b) whether any provision has been made for any liability to tax on capital gains which might arise if the undertaking disposed of its assets and, if so, the amount of the provision;

• (c) the general nature of any other contingent liabilities not included in the manner specified in subparagraph (1) (other than a liability arising under a contract of insurance) and, where practicable, the amounts or estimated amounts of those liabilities.

Form 1

Life Assurance Business:	REVENUE ACCOUNT

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

Fund/Part of Fund/Summary

OB/IB

Items to be shown net of reinsurance ceded	Items to be shown net of reinsurance ceded	The financial year 1	Previous financial year 2
Premiums receivable (less rebates and refunds)	1
Investment income receivable before deduction of tax	2
Increase (decrease) in the value of non-linked assets brought into account	3
Increase (decrease) in the value of linked assets	4
Other income (particulars to be specified)	5
Total income (1 to 5)	6
Claims payable	7
Expenses payable	8
Interest payable before deduction of tax	9
Taxation	10
Other expenditure (particulars to be specified)	11
Transfer to (from) statement of other income and expenditure	12
Total expenditure (7 to 12)	13
Increase (decrease) in fund in financial year (6-13)	14
Fund brought forward	15
Fund carried forward (14 + 15)	16

Instructions for completion of Form 1

the entry at 1.7.1 shall be equal to 3.24.3 and

the entry at 1.8.1 shall be equal 2.16.3.

Life Assurance Business	ANALYSIS OF PREMIUMS AND EXPENSES

Name of Undertaking:

Global business/Irish business /Community business/Other

Financial year ended

Units IR£000

Fund/Part of Fund/Summary

Claims payable in the financial year	Claims payable in the financial year	Claims payable in the financial year	Gross	Recoverable from reinsurers	Net ofreinsurance (1)-(2)
			(1)	(2)	(3)
life assurance contracts	on death	1
life assurance contracts	on maturity	2
life assurance contracts	on surrender or partial surrender	3
total life assurance claims (1 to 3)	4
General Annuity contracts	on death	5
General Annuity contracts	by way of lump sums on maturity	6
General Annuity contracts	by way of periodical payments	7
General Annuity contracts	on surrender or partial surrender	8
total general annuity claims (5 to 8)	9
Pension business	on death	10
Pension business	by way of sums on maturity	11
Pension business	by way of periodical payments	12
Pension business	on surrender or partial surrender	13
total pension business claims (10 to 13)	14
Permanent Health contracts	by way of lump sums	15
Permanent Health contracts	by way of periodical payments	16
total permanent health claims (15 + 16)	17
Capital Redemption contracts	by way of lump sums	18
Capital Redemption contracts	by way of periodical payments	19
total capital redemption claims (18 + 19)	20
Other claims (to be described)		21
Other claims (to be described)		22
total (21 + 22)	23
Total claims (4+9+14+17+20+23)	Total claims (4+9+14+17+20+23)	24
Total claims at line 24 attributable to	Irish Business	25
Non-Irish Business	26

Instuction for completion of Form 3

Form 4

Non-linked/linked

Life Assurance Business:	SUMMARY OF CHANGES IN BUSINESS—ORDINARY BRANCH

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

		Life Assurance	Life Assurance	Life Assurance	Life Assurance	General Annuity	General Annuity	General Annuity	General Annuity	Pension Business	Pension Business	Pension Business	Pension Business	Permanent Health	Permanent Health	Capital Redemption	Capital Redemption
		No. of contracts	Annual premiums	No. of contracts	Single premiums	No. of contracts	Annual premiums	No. of contracts	Single premiums	No. of contracts	Annual premiums	No. of contracts	Single premiums	No. of contracts	Annual premiums	No. of contracts	Annual premiums
		1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
In force at beginning of year	1
New Business	2
Net transfers currency adjustments and other alterations "on"	3
Total (2 + 3)	4
Deaths	5
Maturities	6
Surrenders	7
Forfeitures	8
Conversions to paid-up policies for reduced benefits	9
Net transfers currency adjustments expiries and other alteration "off"	10
Total (5 to 10)	11
In force at end of year (1+4-11)	12

Instructions for completion of Form 4

Form 5

Life Assurance Business:	SUMMARY OF CHANGES IN BUSINESS—INDUSTRIAL BRANCH

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

	Paying	Paying	Paid-up
In force at beginning of year	No. of Policies	Annual Premiums	No. of Policies
Taken out during year—Weekly Business			—
—Monthly Business			—
Converted to paid-up policies during year	—	—
Net transfers, currency adjustments and other alterations "on"
TOTAL "on"
Discontinued during year by virtue of
(a) Deaths
(b) Maturities
(c) Surrenders for cash
(d) Terminations by return of premiums
(e) Conversion to paid-up policies			—
(f) Forfeitures without grant of paid –up policy or cash surrender			—
Net transfers, currency adjustments, expiries and other alterations "off"
TOTAL "off"
In force at end of year

Instructions for completion of Form 5

Form 6

Life Assurance Business:	ANALYSIS OF NEW BUSINESS—ORDINARY BRANCH

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

	Single premium contracts/CE>	Single premium contracts/CE>	Single premium contracts/CE>	Regular premium contracts	Regular premium contracts	Regular premium contracts
Type of Insurance	No. of Contracts	Premiums	Sums assured, annuities per annum or other measure of benefits	No. of Contracts	Annual Premiums	Sums assured, annuities per annum or other measure of benefits
1	2	3	4	5	6	7

Instructions for completion of Form 6

(i) life assurance business
(ii) general annuity business	(iv) permanent health business
(iii) pension business	(v) capital redemption business.

• (i) non-linked contracts: with participation in profits,

• (ii) non-linked contracts: without participation in profits,

• (iii) linked contracts.

(i) whole life assurance	(viii) other annuity (to be specified)
(ii) endowment assurance	(ix) group pension
(iii) pure endowment assurance	(x) group life
(iv) term assurance	(xi) other group (to be specified)
(v) other assurance (to be specified)	(xii) permanent health assurance
(vi) deferred annuity	(xiii) capital redemption assurance
(vii) annuity in payment	(xiv) annuity certain.

Life Assurance Business: Form 7

ANALYSIS OF NEW BUSINESS — INDUSTRIAL BRANCH

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

	Whole life (including joint life)	Endowment assurance (including jointlife)	(See note)	Other tables
	1	2	3	4
Number of policies issued: Weekly business Monthly business
Annual Premiums Weekly business Monthly business	IR£ IR£	IR£ IR£	IR£ IR£	IR£ IR£
Sums assured Weekly business Monthly business	IR£ IR£	IR£ IR£	IR£ IR£	IR£ IR£

Instruction for completion of Form 7

If any table other than those shown in columns 1 and 2 (e.g. a table providing for recurring payments) is of significant amount details shall be given in column 3 with an appropriate heading. In the case of a table including a recurring payment, the sum assured on death before the date of the first recurring payment shall be shown against "sums assured" above and the amount of the recurring payment shall be shown separately in brackets.

Life Assurance Business	EXPECTED INCOME FROM DESIGNATED NON-LINKED ASSETS Form 8

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

Fund	OB/IB
---	---
Type of asset
Land
Fixed interest securities	issued by, or guaranteed by, any Government or public authority
other	3
Variable interest securities excluding equity shares	issued by, or guaranteed by, any Government or public authority except those included at line 5
Variable interest securities excluding equity shares	issued by, any Government or public authority or public where the capital value or interest is determined by an index of prices
other	6
Equity shares	Equity shares
Debts fully secured on land	due more than 12 months after the end of the financial year
due within 12 months after the end of the financial year	9
All other assets	producing income
not producing income	11
Total	Total

Instructions for completion of Form 8

1. Where Form 15 if for the same fund or group of funds:—
The entry at 8.1.1. shall be equal to 15.1.3	The entry at 8.7.1. shall be equal to 15.8.3 + 15.9.3 + 15.10.3
The entry at 8.2.1. shall be equal to 15.2.3	The entry at 8.8.1. shall be equal to 15.25.3 + part of 15.29.3
The entry at 8.3.1. shall be equal to 15.3.3 + 15.4.3 + 15.5.3	The entry at 8.9.1. shall be equal to 15.26.3 + part of 15.31.3 The entry at 8.12.1. shall be equal to 15.43.3
The total for 8.4.1 + 8.5.1 shall be equal to 15.6.3
The entry at 8.6.1. shall be equal to 15.7.3

Form 9

Life Assurance Business	ANALYSIS OF DESIGNATED NON-LINKED FIXED INTEREST SECURITIES

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

UnitsIR£000

Fund	OB/IB
---	---
Redemption period in years	Redemption period in years
Issued or guaranteed by any government or public authority	one year or less
Issued or guaranteed by any government or public authority	more than one year but not more than five years
Issued or guaranteed by any government or public authority	more than five years but not more than ten years
Issued or guaranteed by any government or public authority	more than ten years but not more than fifteen years
Issued or guaranteed by any government or public authority	more than fifteen years but not more than twenty years
Issued or guaranteed by any government or public authority	more than twenty years
Issued or guaranteed by any government or public authority	irredeemable
total (1 to 7)	8
Other	one year or less
Other	more than one year but not more than five years
Other	more than five years but not more than ten years
Other	more than ten years but not more than fifteen years
Other	more than fifteen years but not more than twenty years
Other	more than twenty years
Other	irredeemable
total (9 to 15)	16

Instructions for completion of Form 9

Form 10

Life Assurance Business:

ANALYSIS OF HOLDINGS IN RECOGNISED UNIT TRUSTS DIRECTLY MATCHING LIABILITIES IN RESPECT OF PROPERTY LINKED BENEFITS.

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

Fund	OB/IB
---	---
Name of unit trust	Number of units held
1	2
Total

Instruction for Completion of Form 10

The basis on which the assets have been valued shall be stated in a note to this Form.

Form 11

Life Assurance Business:

ANALYSIS OF ASSETS WHICH ARE MATCHING LIABILITIES IN RESPECT OF PROPERTY LINKED BENEFITS OTHER THAN HOLDINGS IN RECOGNISED UNIT TRUSTS OR INTERNAL LINKED FUNDS.

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

OB/IB

Name of contract	Value of assets	Value of assets	Value of assets	Value of assets	Value of assets
Type of asset	1	2	3	Etc.	Total
Total

Instruction for completion of Form 11

Form 12

Life Assurance Business:

BALANCE SHEET FOR INTERNAL LINKED FUNDS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000	OB/IB
---	---
Names of Funds	Names of Funds
Type of asset	Type of asset
Land	Land
Fixed interest securities	Government or Public authority
Other	3
Variable interest securities	Variable interest securities
Unit Trusts	Unit Trusts
Mortgages on land	Mortgages on land
Building Society shares and deposits	Building Society shares and deposits
Deposits and loans	Deposits and loans
Income due or accrued	Income due or accrued
Cash	Cash
Other assets (particulars to be specified)	Other assets (particulars to be specified)
Total (1 to 11)	Total (1 to 11)
Total investment in other internal linked funds of the company	Total investment in other internal linked funds of the company
Total assets (12 + 13)	Total assets (12 + 13)
Amount set aside for tax on capital gains not yet realised	Amount set aside for tax on capital gains not yet realised
Secured loans	Secured loans
Unsecured loans	Unsecured loans
Other liabilities (particulars to be specified)	Other liabilities (particulars to be specified)
Total liabilities (15 to 18)	Total liabilities (15 to 18)
Net asset value(14 —19)	Net asset value(14 —19)

Instructions for completion of Form 12

Form 13

Life Assurance Business:

ANALYSIS OF UNITS IN INTERNAL LINKED FUNDS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Name of internal linked fund in which invested	Name of unit link	Valuation price per unit	Total number of units in force	Value of total units in force	Value of units held by each internal linked fund in each unit link of other internal linked funds	Value of units held by each internal linked fund in each unit link of other internal linked funds	Value of units held by each internal linked fund in each unit link of other internal linked funds	Value of units held by each internal linked fund in each unit link of other internal linked funds	Value of units in force excluding those held by other internal linked funds (5-9)
A	B	etc	Total
1	2	3 IR£	4	5 IR£000	6	7	8	9	10
A	Link 1
	Etc.
	Total
B	Link 1
	Etc.
	Total
etc.
Total

Instructions for completion of Form 13

Form 14

Life Assurance Business:

REVENUE ACCOUNT FOR INTERNAL LINKED FUNDS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

Units IR£000

OB/IB

Names of funds		A	B	C	D	E	etc.
Value of net creation of units	1
Investment income attributable to the fund before deduction of tax	2
Increase (decrease) in the value of investments in financial year	3
Other income (particulars to be specified)	4
Total income (1 to 4)	5
Value of net cancellation of units	6
Charges for management	7
Charges in respect of tax on investment income	8
Taxation on realised capital gains	9
Increase (decrease) in amount set aside for tax on capital gains not yet realised	10
Other provisions/reserves/expenditure (particulars to be specified)	11
Total expenditure (6 to 11)	12
Increase (decrease) in fund in the financial year (5 — 12)	13
Internal linked fund brought forward	14
Internal linked fund carried forward	15

Instruction for completion of Form 14

Funds shall be entered in the same column positions on this form and on Form 12.

Form 15

ASSET ANALYSIS

Name of Undertaking:

Global business/Irish business/Community business/Other

Life assurance business assets/not life assurance business assets

Financial year ended

Units IR£000

				Asset CategoryAssets at book value	Assets valued in accordance with Valuation Regulations	Designated assets in (2) representing the life assurance business amount	Designated assets in (2) representing the life assurance business amount	Assets in (3) localised in accordance with Regulations	Assets in (3) localised in accordance with Regulations	Assets in (3) not localised in Ireland
					% of		% of
(1)	(2)	(3)	L.A.B.A.	(4)	liabilities	(5)
Land	Land	Land	1
Fixed interest securities	Issued by, or guaranteed by, any government or public authority	Issued by, or guaranteed by, any government or public authority		2
Fixed interest securities	Other fixed interest securities except those in dependants which must be included in lines 11 to 14 and any to be included in lines 25 or 26	Listed	3
Fixed interest securities	Other fixed interest securities except those in dependants which must be included in lines 11 to 14 and any to be included in lines 25 or 26	Unlisted debentures	4
Other unlisted	5
Variable interest securities except those included at lines 8 to 14	Issued by, and guaranteed by, any government or public authority	Issued by, and guaranteed by, any government or public authority	6
	Other	Other	7
Other variable interest investments	Equity shares except those in dependants which must be included in lines 11 or 13	Listed	8
Other variable interest investments	Unlisted	9
Holdings in recognised unit trusts	Holdings in recognised unit trusts	10
Investment in dependants	Insurance companies	Value of any shares held	11
Investment in dependants	Debts other than amounts which must be included in lines 17 or 21 to 24	12
Investment in dependants	Non-insurance companies	Value of any shares held	13
Debts, other than amounts which must be included in lines 17 or 21 to 24	14
Total (1 to 14)	Total (1 to 14)		15

Form 15

(Sheet 2)

ASSET ANALYSIS

Name of Undertaking:

Global business/Irish business/Community business/Other

Life assurance business assets/not life assurance business assets

Financial year ended

Units IR£000