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

• (2) A statement for each category of linked contract which is separately distinguished in Form 26 is to be given in such one of the forms set out in Forms 38 to 43 as is appropriate to that category of contract, or, in the case of a category of contract to which none of these forms is appropriate, in such form and containing such particulars as are sufficient to enable an independent assessment of the liabilities of the undertaking's life assurance business to be made. As far as possible, the order in which the statements appear in this Schedule shall follow the order in which the categories of contract appear in Form 26. The amounts shall be expressed in terms of currency or units as appropriate. In the case of contracts expressed in non-monetary units, the Irish pound values of the bid and offer prices of the units at three monthly intervals since the date of the previous statement prepared under Article 5 (2) are to be given in a supplement.

• (3) Where contracts are written in currencies other than Irish pounds amounts in such currencies may be distinguished in the statements referred to above and expressed in those currencies, provided that the "total" items in each statement are also given in Irish pounds for each currency at the rate of exchange for that currency used for the purpose of preparing the valuation summary.

• (4) A separate statement is to be given in respect of each category of contract for—

• (i) direct business and reinsurance accepted; and

• (ii) reinsurance ceded.

• (5) In the case of a category of contract subject to premiums payable only for a limited term, the premiums are to be classified either —

• (a) according to age, or

• (b) according to the number of annual payments remaining to be made,

but if the premiums are classified under (a) there is to be appended to the form either a statement of the corresponding valuation factors required in calculating the value of future premiums or a statement of the average future period of payment of the premiums at each age.

• (2) In the case of a category of linked contract where the non-unit liability is less than 1 per cent of the unit liability for that category of contract, it will be sufficient for that fact to be stated and for the information to be given for all ages combined rather than analyzed by age groups as required by paragraph 2 (2)—

Provided that if the category of contract contains an investment performance guarantee or if the valuation method requires the discounting of the value of units, no advantage may be taken of this subparagraph.

• (2) For those contracts where there are no minimum values or amounts guaranteed, particulars and examples of the values and amounts currently allowed are to be given as under subparagraph (1) of this paragraph but only in respect of standard types of insurance.

• (3) In the case of linked contracts where full information has been given under paragraph 4 (1) (a) of Schedule 4 no information in respect of surrender values and paid-up amounts need be given under this paragraph.

• (4) Where any of the surrender values or paid-up amounts referred to in this paragraph in relation to industrial assurance business are the minimum amounts prescribed under the Insurance Act, 1936 , this fact shall be stated.

Form 31

WHOLE LIFE ASSURANCES

Name of Undertaking:

Global business/Irish business/Community business/ Other

Financial year ended

OB/IB

Age (starting with the youngest)	Sums assured	Reversionary bonuses	Annual office premiums
1	2	3	4
Total

Instructions for completion of Form 31

Form 32

ENDOWMENT ASSURANCES

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year of maturity (starting with the nearest)	Sums assured	Reversionary bonuses	Annual office premiums
1	2	3	4
Total

Instruction for completion of Form 32

The information may be given for 5-year groups of year of maturity for contracts maturing more than 10 years after the valuation date.

Form 33

DEFERRED ANNUITIES WITH GUARANTEED CASH OPTIONS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year in which payment of annuity is due to commence (starting with the nearest)	Cash option in lieu of annuity (excluding bonus)	Cash option in lieu of bonus additions	Annual office premiums
1	2	3	4
Total
	Total annuity per annum corresponding to total cash options in	Total annuity per annum corresponding to total cash options in
	Column 2	Column 3

Instructions for completion of Form 33

Form 34

DEFERRED ANNUITIES WITHOUT GUARANTEED CASH OPTIONS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year in which payment of annuity is due to commence (starting with the nearest)	Men	Men	Men	Women	Women	Women
Annual amount of annuities (excluding bonus)	Amount of bonus additions per annum	Annual office premiums	Annual amount of annuities (excluding bonus)	Amount of bonus additions per annum	Annual office premiums
1	2	3	4	5	6	7
Total

Instructions for completion of Form 34

Form 35

ANNUITIES IN PAYMENT: PAYABLE FOR LIFE INCLUDING THOSE GUARANTEED FOR A MINIMUM TERM CERTAIN

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Age (starting with the youngest)	Amount in payment per annum	Amount in payment per annum
Men	Women
1	2	3
Total

Instructions for completion of Form 35

Form 36

ANNUITIES IN PAYMENT: PAYABLE FOR A TEMPORARY PERIOD, INCLUDING THOSE PAYABLE FOR A TERM CERTAIN

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year in which the term ends (starting with the nearest)	Amount in payment per annum
1	2
Total

Form 37

MISCELLANEOUS NON-LINKED CONTRACTS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Type of insurance	Number of contracts	Amount of sums assured or annual amounts of annuity	Amount of reversionary bonuses	Amount of annual office premiums	Amount of mathematical reserves
1	2	3	4	5	6
Total

Form 38

LINKED SINGLE PREMIUM ASSURANCES

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Age (starting with the youngest)	Current sums assured	Guaranteed minimum sums assured	Number of units allocated at valuation date
1	2	3	4
Total

Instructions for completion of Form 38

Form 39

LINKED REGULAR PREMIUM ASSURANCES WITHOUT MONETARY GUARANTEES ON SURVIVAL: UNIT LIABILITY NOT DISCOUNTED

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Age (starting with the youngest)	Current sums assured	Guaranteed minimum sums assured	Number of units allocated at valuation date	Annual office premiums	Annual amount deemed invested in units in future
1	2	3	4	5	6
Total

Instructions for completion of Form 39

Form 40

LINKED REGULAR PREMIUM ASSURANCES WITH MONETARY GUARANTEES ON SURVIVAL: UNIT LIABILITY NOT DISCOUNTED

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year of maturity (starting with the nearest)	Current sums assured on death	Guaranteed minimum sums assured on death	Guaranteed minimum sums assured on maturity or surrender	Number of units allocated at valuation date	Annual office premiums	Annual amount deemed invested in units in future
1	2	3	4	5	6	7
Total

Instructions for completion of Form 40

Form 41

LINKED REGULAR PREMIUM ASSURANCES WITH OR WITHOUT MONETARY GUARANTEES ON SURVIVAL: UNIT LIABILITY PARTIALLY OR WHOLLY DISCOUNTED

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year of maturity (starting with the nearest)	Current sums assured on death	Guaranteed minimum sums assured on death	Guaranteed minimum sums assured on maturity	Number of units allocated at valuation date	Annual office premiums	Annual amount deemed invested in units in future
1	2	3	4	5	6	7
Total

Instructions for completion of Form 41

Form 42

LINKED DEFERRED ANNUITIES

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Year in which payment of annuity is due to commence (starting with the nearest)	Number of units allocated at valuation date
1	2
Total

Instructions for completion of Form 42

Form 43

LINKED ANNUITIES IN PAYMENT

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Age (starting with the youngest)	Men	Men	Women	Women
Number of units in payment per annum	Number of annuity units deemed allocated	Number of units in payment per annum	Number of annuity units deemed allocated
1	2	3	4	5
Total

Instructions for completion of Form 43

Form 44

MISCELLANEOUS LINKED CONTRACTS

Name of Undertaking:

Global business/Irish business/Community business/Other

Financial year ended

OB/IB

Name of contract	Number of contracts	Amount of sums assured or annual amounts of annuity including bonuses	Amount of annual office premiums	Name of unit link	Number of units deemed allocated	Unit liability	Non-unit liability
1	2	3	4	5	6	7	8
Total

Instruction for completion of Form 44

Where a category of contract has more than one unit link, a sub-division into each different unit link is required in columns 5, 6 and 7. Columns 6 and 7 shall be totalled in respect of each different unit link.

SCHEDULE 6

VALUE OF DEPENDANTS

PART 1 THE SUPPLEMENTARY AMOUNT

in which—

A is the supplementary amount;

B is the amount by which the value of assets of that description held by the dependant, excluding any life assurance business assets of the dependant if it is an insurance undertaking, exceeds the permitted limit applicable to the dependant in relation to those assets;

C is the aggregate of the amount specified in B and of the amounts by which the value of assets of the same description held by other relevant dependants, excluding any life assurance business assets of a dependant which is an insurance undertaking, exceeds respectively the permitted limits applicable to such other relevant dependants in relation to those assets;

D is —

• (a) where the insurance undertaking holds no assets of the same description of the relevant class, the amount of the permitted limit that would be applicable to the insurance undertaking in relation to such assets were it to hold them; and

• (b) where the insurance undertaking holds assets of the same description of the relevant class, the amount by which the permitted limit applicable to the insurance undertaking in relation to those assets exceeds the value of those assets.

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

• (b) the amount of the permitted limit applicable in relation to any asset of a relevant dependant, the asset in question shall be left out of account for that purpose.

• (2) In this Part of this Schedule —

"relevant dependant" means —

• (a) where this Schedule is being applied in relation to the determination of the value of a share in, or debt due or to become due from a dependant of the insurance undertaking which is a life assurance business asset of the insurance undertaking, any dependant of the insurance undertaking —

• (i) a share in which, or in any company of which it is a dependant, is a life assurance business asset of the insurance undertaking, or

• (ii) from which a debt is due, or will become due, to the insurance undertaking which is a life assurance business asset of that undertaking; and

• (b) in any other case, any dependant of the insurance undertaking —

• (i) a share in which, or in any company of which it is a dependant, is not a life assurance business asset of the insurance undertaking, or

• (ii) from which a debt is due, or will become due, to the insurance undertaking which is not a life assurance business asset of that undertaking.

SCHEDULE 6

PART 2 FURTHER PROVISIONS AND MODIFICATIONS OF THE REGULATIONS APPLICABLE WITH RESPECT TO THE DETERMINATION OF THE VALUE OF DEPENDANTS

• (2) Article 40 (4) shall not apply with respect to a determination of the value of assets of a dependant to which this paragraph applies.

• (3) Where, in the case of a determination of the value of assets of a dependant to which this paragraph applies —

• (a) the dependant is an insurance undertaking and has assets of a relevant description which are not life assurance business assets or is not an insurance undertaking and has assets of a relevant description,

• (b) the value of such assets exceeds the permitted limit applicable to the dependant in relation to those assets, and

• (c) any controller of the dependant has no assets of the same description of the relevant class, or has assets of the same description of the relevant class and their value is less than the permitted limit applicable to that controller in relation to those assets;

then, for the purposes of such determination there shall be added to the permitted limit applicable to the dependant in relation to the assets referred to in subparagraph (a) an amount equal to the supplementary amount or, if there is more than one such controller, to the aggregate of the supplementary amounts, determined with respect to any such controller in accordance with Part 1 of this Schedule, subject, where the controller is not the insurance undertaking, to the modifications specified in subparagraph (5).

• (4) In this paragraph, "a controller" means, in relation to a dependant —

• (a) the insurance undertaking,

• (b) the subject company, if it is an insurance undertaking, and

• (c) a dependant of the insurance undertaking which is an insurance undertaking and of which the subject company is a dependant.

• (5) Where subparagraph (3) is being applied in relation to a controller, other than the insurance undertaking —

• (a) Part 1 of this Schedule, as applied in accordance with the said subparagraph (3), shall have effect as if, for the reference to the insurance undertaking, there were substituted references to the controller, and

• (b) the references to assets being of a relevant class in the said subparagraph (3) and in Part 1 of this Schedule, as so applied, shall be construed as referring to life assurance business assets of the controller, if the said subparagraph (3) is being applied in connection with the determination of the value of a life assurance business asset of the controller, and to assets which are not life assurance business assets of the controller, in any other case.

• (a) these Regulations shall apply to the subject company as if it were an insurance undertaking and its assets were being valued for the purpose specified in Article 38 (1);

• (b) Article 38 (2) shall not apply; and

• (c) Article 49 shall not apply.

SCHEDULE 7

ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT

PART 1

1	2	3
Descriptions of Assets Note the overriding restriction in Part 3	Maximum % of life assurance business amount which an individual asset in column 1 must not exceed	Maximum % of life assurance business amount which the aggregate of assets in column 1 must not exceed
1. A piece of land (not being land held as a security for a debt) or a number of pieces of such land to which in the most recent proper valuation of such pieces of land, an aggregate value is ascribe which is greater than the aggregate of the value of each of such pieces of land valued separately.	5%	30%
2. A debt (other than a listed debenture) due or to become due to the undertaking from any person (not being an individual nor a dependant of the undertaking) which is fully secured on land or a number of such debts all of which are secured on the same land.	5%	10%
3. Debts (other than listed debentures, debts to which Article 41(2),(3)or(4) applies, and debts of the descriptions specified in paragraph 2 or 17) which are due or will become due to the undertaking within twelve months of the relevant date (including debts which would become due within that period if the undertaking were to exercise any right to which it is entitled to require payment or repayment of the same) from —
(a) any one company and any of its connected companies (not being a dependant of the undertaking)	2½%	5%
(b) any one unincorporated body persons not being moneys due from the State or any public body.	2½%	5%
4. Debts (other than listed debentures, debts to which Article 41(2),(3)or(4) applies and debts of the descriptions specified in paragraph 2, 3 or 17) which will become due to the undertaking from—
---	---	---
1	2	3
Descriptions of Asset Note the overriding restriction in Part 3	Maximum % of life assurance business amount which an individual asset in column 1 must not exceed	Maximum % of life assurance business amount which the aggregate of assets in column 1 must not exceed
(a) any one company and any of its connected companies (not being a dependant of the undertaking)	1%	2½%
(b) any one unincorporated body of persons not being moneys due from the State or any public body.	1%	2½%
5. Debts which are due or will become due to the undertaking which are secured on a policy of insurance issued by the undertaking as described in Article 41(2).	1%	2½%
6. Debts due or other rights of the undertaking under any contract of reinsurance as described in Article 41(4).	1%	2½%
7. Listed equity shares in —
(a) any one company and any of its connected companies (not being a dependant of the undertaking), and	50%	(a) + (b) 55%
(b) any one of the associated banks (not being a dependant of the undertaking).	10%	(a) + (b) 55%
8. Listed shares (including listed equity shares but only to the extent that such shares may be taken into account in accordance with paragraph 7) and listed debentures in —
(a) any one company and any of its connected companies (not being a dependant of the undertaking), and	7½%	(a) + (b) 55%
(b) any one of the associated banks (not being a dependant of the undertaking).	10%	(a) + (b) 55%
9. Unlisted shares in any one company and any of its connected companies (not being a dependant of the undertaking).	1%	2½%
10. Debenture options and share options (including traded options) in any one company and any of its connected companies (not being a dependant of the undertaking).	¼	1%
---	---	---
1	2	3
Descriptions of Asset Note the overriding restriction in Part 3	Maximum % of life assurance business amount which an individual asset in column 1 must not exceed	Maximum % of life assurance business amount which the aggregate of assets in column 1 must not exceed
11. Debts due or to become due to the undertaking from an individual (other than debts of the descriptions specified in Article 41(2) or paragraph 3 (b) or 4 (b) or paragraphs 12 and 17).	¼%	5%
12. Debts due or to become due to the undertaking from an individual (other than an individual who is connected with the undertaking) being debts which are fully secured on any dwelling or any land appurtenant thereto owned or to be purchased by the individual and used or to be used by him for his own residence.	1%	10%
13. Computer equipment.	5%	5%
14. Office machinery (other than computer equipment), furniture, motor vehicles and other equipment.	2½%	2½%
15. Units or other beneficial interest held under a recognised unit trust as described in Article 45.	10%	20%
16. Any loans to, or deposits with, any one approved financial institution.	50%	100%

SCHEDULE 7

PART 2

1	2	3
Description of Asset	Maximum % of life assurance net premium income amount which an individual asset in column 1 must not exceed	Maximum % of life assurance net premium income which the aggregate of assets in column 1 must not exceed
17. Amounts recorded in the insurance company's books as due in respect of premiums (other than premiums in respect of treaty reinsurance accepted) which either—	2½%	15%
(a) have not been paid, or
(b) have been received by an intermediary on behalf of the company, but have not been paid to the company by the intermediary,
less any rebates, refunds and commission recorded in the company's books as allowable or payable in respect of any such amounts.

SCHEDULE 7

PART 3

1	2
Paragraphs 1 and 2	30%
Paragraphs 7,8,9 and 10	55%
Paragraphs 1,2,7,8,9,10 and 15*	65%
Paragraphs 13 and 14	5%
Paragraphs 1 to 15	75%

*In respect of that portion of the assets invested in equities/property.

SCHEDULE 7

PART 4

• (a) a subsidiary of that other company, or

• (b) the holding company of that other company, or

• (c) a subsidiary of the holding company of that other company.

GIVEN under my Official Seal, this 18th day of December, 1986.

MICHAEL NOONAN,

Minister for Industry and Commerce.

EXPLANATORY NOTE

These Regulations complement the European Communities (Life Assurance) Regulations, 1984, S.I. No.57 of 1984. which gave effect to the Council Directive of the European Communities of 5 March, 1979 (79/267/EEC). They require all life assurance undertakings carrying on business in Ireland to submit to the Minister for Industry and Commerce Statutory Returns in the form set out in the Schedules. They also require an actuarial investigation to be carried out annually and introduce rules for the valuation of underwriting liabilities and of assets. Ancillary provisions include requirements for localisation of assets and the treatment of reinsurance. The prescribed Returns will allow for improved assessment of the solvency and financial security of each undertaking. Five separate categories of undertaking are provided for and the extent of the data and other requirements from each category varies with the supervision responsibilities of the Minister under the Directive. The Regulations have the effect of amending certain provisions of the Insurance Acts, 1909 to 1985. They apply in respect of the financial year in which they are made and all subsequent financial years.