S.I. No. 359/1994 - European Communities (Non-Life Insurance) Framework Regulations, 1994

( a ) in the case of a dependant which is an insurance undertaking, the amount realised from its assets and the amount of its liabilities in the liquidation were equal to the value of those assets and the amount of those liabilities, as determined in accordance with section 4 of this Annex, and

( b ) in the case of a dependant which is not an insurance undertaking, the amount realised from its assets in the liquidation was equal to the value of those assets, as determined in accordance with the said section 4.

( a ) in which there is no excess of assets over liabilities as is mentioned in paragraph 3, or

( b ) in relation to which an insurance undertaking cannot reasonably ascertain the amount of the liabilities of the dependant for the purposes of paragraph 3,

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

( a ) subject to paragraph 3 and paragraph 4 of Schedule 1, the value of its assets shall be determined in accordance with this Part;

( b ) subject to sub-paragraphs (c), (d), (e), (f) and (g) the amount of its liabilities shall be determined in accordance with Council Directive 91/674/EEC^(12);

( c ) where the dependant carries on non-life insurance business, its non-life insurance business liabilities shall be deemed to include an amount equal to whichever is the greater of 400,000 units of account or a solvency margin calculated in accordance with Annex II to these Regulations;

( d ) where the dependant carries on life assurance business, its life assurance business liabilities shall be deemed to include whichever is the greatest of the following three amounts:

• (i) an amount ("the first amount") which is one-sixth of the solvency margin that would be arrived at by regarding the dependant as having its head office in the State (whether it has or not) and applying Part B of Annex II to the European Communities (Life Assurance) Framework, Regulations 1994;

• (ii) an amount which is six times the first amount, reduced by the implicit figure within the meaning of sub-paragraph (e);

• (iii) 800,000 units of account;

( e ) for the purposes of sub-paragraph (d) (ii) the implicit figure is:

• (i) in the case of a dependant having its head office in the State, the amount of any implicit items relating to future profits, zillmerising (as defined in the European Communities (Life Assurance) Framework Regulations, 1994), or hidden reserves which the dependant is permitted to count by virtue of a direction under Article 3 of these Regulations and the application of Article 2 (f) of Part A of Annex II to these Regulations and Annex VI of the European Communities (Life Assurance) Framework Regulations, 1994;

^(12)O.J. L374, 31.12.1991.

• (ii) in the case of a dependant having its head office elsewhere than in the State, the amount of any implicit items relating to future profits or zillmerising which would be arrived at by regarding the dependant as having its head office in the State and as having received a direction under Article 3 of these Regulations and by applying Article 2 (f) of Part A of Annex II to these Regulations and Annex VI of the European Communities (Life Assurance) Framework Regulations, 1994;

( f ) in any case where the dependant is required to establish a life assurance business fund or funds under the Insurance Acts and Regulations its life assurance business liabilities shall be deemed to be not less than the value of the assets representing that fund or funds;

( g ) for the purpose of this Section, an insurance undertaking includes a reinsurance undertaking.

( a ) the value of its assets shall be determined in accordance with this Part, subject to the provisions of and the modifications provided for in paragraphs 3 and 4 of Schedule 1;

( b ) subject to paragraph 4, assets of the dependant which are of a relevant description shall be taken into account only to the extent that their value does not exceed the permitted limit applicable to the dependant in relation to those assets; and

( c ) any equipment leased by the dependant exclusively to any person other than its subsidiary or holding company or a subsidiary of its holding company shall be valued as a debt for the purposes of this Part.

( a ) the dependant is an insurance undertaking and has assets of a relevant description which are not non-life insurance 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 ) the insurance undertaking 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 the insurance undertaking in relation to those assets, then, for the purpose of determining the value of the assets of the dependant, there shall be added to the permitted limit applicable to the dependant in relation to the assets referred to in sub-paragraph (a) an amount equal to the supplementary amount determined in accordance with Part 1 of Schedule 1.

"assets of a relevant description" means assets of a description specified in Part 1 of Schedule 2 or, in the case of a dependant which is not an insurance undertaking, assets which would be of such a description if it were an insurance undertaking;

"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 section 3 of this Annex.

"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 insurance business, an amount equal to the percentage of net technical reserves applicable in relation to assets of that description in accordance with Article 13 of these Regulations and

( b ) in the case of a dependant which is not an insurance undertaking, an amount equal to the percentages specified in Schedule 2 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 2, 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 2, 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 dependant of a description specified in paragraphs 3 to 15 of Schedule 2, assets of that other company which, if held by the dependant, would be assets of that description.

( a ) where this section and Schedule 1 are being applied for the purpose of determining the value of a non-life insurance business asset of the insurance undertaking, assets of the insurance undertaking which are non-life insurance business assets, and

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

( 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 section.

( a ) in the case of any such debt with a specified payment date or dates (other than a debt between related companies) which is due, or will become due, within twelve months of the relevant date 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 of the terms and conditions 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 taking account of

• (i) whether the debt is a debt between related companies;

• (ii) any security held in respect thereof;

• (iii) the terms and conditions for payment thereof;

Provided that, in determining the amounts referred to in sub-paragraphs (a) and (b), no account shall be taken (i) of any debts outstanding for more than three months, arising out of direct insurance operations, which are owed by policyholders and intermediaries or (ii) any letter of credit.

( 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 Annex applies.

( 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.

8. Unlisted Securities

( 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).

P — L

Y

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 not 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.

( 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.

( a ) no amount is attributable thereto in accordance with paragraph 3 or the share is not realisable in the short term,

( b ) the company in which the share is held has been carrying on businesses 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.

The value of any holding of units, or other beneficial interest, under:

( a ) 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

( b ) a unit trust which is an authorised unit trust scheme within the meaning of section 4 of the Unit Trusts Act, 1990 , or

( c ) a collective investment scheme approved by the Central Bank under Section 256 (8) of the Companies Act, 1990 , and Section 9 of the Unit Trusts Act, 1990 , or

( d ) a scheme falling within the Council Directive on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferrable securities ("UCITS") No. 85/611/EEC,

shall be the price at which the managers under the unit trust or UCITS would purchase the holding of units or other beneficial interest if required to do so.

( a ) if that suspension was in force for a period in excess of ten days, the 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 of suspension came into force, and

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

Acquisition costs deferred shall be recorded as an asset and the amount deferred shall be consistent with the calculation of the unearned premium reserve.

( a ) in the case of 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.

( a ) it is traded on a regulated market or the counter party is an approved credit institution or other institution approved by the Minister; and

( b ) that the underlying assets are admissible assets as described in column 1 of Schedule 2; and

( c ) it contributes to reduction of investment risks or facilitates efficient portfolio management; and

( d ) having regard to the nature and amount of assets which it holds and to its liabilities, the company will have, at the settlement date and (if applicable) in the relevant fund, assets to fulfil its obligations under that instrument.

• (2) Subject to paragraph (3) below, the value of rights under a derivative instrument to which this section applies shall be—

( a ) in the case of a listed derivative instrument, the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof; or

( b ) in the case of an unlisted derivative instrument which the insurance underwriting—

• (i) has entered into with an approved counterparty, and

• (ii) reasonably believes may be readily closed out by entering into a further approved derivative instrument with an approved counterparty,

the amount that would reasonably be paid by way of consideration for closing out that instrument;

• (3) There shall be deducted from the amount calculated in accordance with paragraph 2 above the amount of any cash or other assets as shall at the relevant date have been paid or transferred to the insurance undertaking in respect of that instrument.

• (4) In this section, approved derivative instrument means:

( a ) a contract for differences under which the amount payable by either party is calculated by references to fluctuations in the value of—

• (i) an asset for the valuation of which provision is made in this Annex to these Regulations; or

• (ii) income from such an asset; or

• (iii) an index of such assets, or income therefrom, the value of which is determined on the basis of an arithmetric average of the value of the assets which comprise the index; or

• (iv) an index in respect of which a derivative instrument is listed; or

( b ) a futures contract or an option where any of the property to be acquired or disposed of is an asset for the valuation of which provision is made in this Annex to these Regulations.

• (5) For the purposes of this section—

"approved counterparty" means an approved credit institution or other institution approved by the Minister.

( a ) for an individual asset of a description specified in column 1, Part I, an amount equal to the percentage of the technical reserves 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 technical reserves specified in column 3 for assets of that description;

( c ) for the aggregate of the assets of a description specified in column 1, Part II, 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.

( a ) where an undertaking is a party to a derivative instrument which (wholly or in part), is or has the equivalent effect to a futures contract which—

• (i) provides for the acquisition of assets;

• (ii) is listed and provides for the disposal of assets; or

• (iii) is not listed but provides for the disposal of assets to an approved credit institution within a year;

for the purposes of determining its aggregate exposure, the undertaking shall be deemed at the valuation date to have acquired or disposed of such assets;

( b ) where the undertaking is a party to a derivative instrument which is (wholly or in part) an option which

• (i) provides for the acquisition of assets;

• (ii) is listed and provides for the disposal of assets; or

• (iii) is not listed put provides for the disposal of assets to an approved credit institution within a year;

and it is prudent at the valuation date to assume that such option will be exercised, for the purposes of determining its aggregate exposure, the undertaking shall be deemed to have acquired or disposed of such assets at that date;

( c ) where an undertaking is a party to a derivative instrument which (wholly or in part) is or has the equivalent effect to a contract for differences the value of which depends to a significant extent upon fluctuations in the value of, or income from, particular assets, for the purposes of determining its aggregate exposure, the undertaking shall be deemed to have achieved the effect of such contract for differences by entering into appropriate options or futures contract in respect of those assets, and such options or futures contracts shall be dealt with in accordance with paragraphs (a) and (b) above;

( d ) the amount of the aggregate exposure of the undertaking to assets of any particular description shall be the value of such assets held by the undertaking (if any) adjusted to take account of assets which the undertaking is deemed to have acquired or disposed of by the application of paragraphs (a) to (c) above.

"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.

ANNEX IV

MATCHING RULES

The currency in which an insurance undertaking's commitments are payable shall be determined in accordance with the following rules:

This could be the case if, from the time the contract is entered into, it appears likely that a claim will be paid in the currency of the premium and not in the currency of the country in which the risk is situated.

— for contracts covering risks classified under classes 4, 5, 6, 7, 11, 12 and 13 (producers' liability only), and

— for contracts covering the risks classified under other classes where, in accordance with the nature of the risks, the cover is to be provided in a currency other than that which would result from the application of the above procedures.

However:

( a ) in the case of technical reserve assets to be matched in Irish pounds, Greek drachmas and Portuguese escudos, this amount shall not exceed:

— 2 million ECU from 1 January, 1993 to 31 December, 1998;

( b ) in the case of technical reserve assets to be matched in Belgian Francs, Luxembourg Francs and Spanish Pesetas, this amount shall not exceed 2 million ECU during a transitional period ending 31 December, 1996.

From the end of the transitional periods defined under (a) and (b), the general regime shall apply for those currencies, unless the Council of the European Communities decides otherwise.

GIVEN under my Official Seal, this 29th day of November, 1994.

CHARLIE McCREEVY,

Minister for Enterprise and

Employment.

EXPLANATORY NOTE.

These Regulations give effect to the Third Non-Life Insurance Framework Directive (92/49/EEC — O. J. No. L 228/1) which institutes a single authorisation system of supervision of insurance undertakings operating throughout the European Communities whereby insurance undertakings transacting business on either a cross-border or branch basis will be subject to overall supervisory control of the supervisory authority where their head offices are located.

The Regulations require non-life insurance undertakings to furnish information and statistical documents necessary for supervision purposes to the Minister. The Regulations introduce revised rules for the valuation of underwriting liabilities and assets and revised requirements for localisation of assets. The regulations provide that any significant increase or decrease in shareholdings in an insurance undertaking will be notified in advance to the Minister.

The Regulations also include certain information requirements which insurance undertakings must disclose to policyholders when an insurance contract is being effected. Insurers underwriting third party motor insurance will continue to be subject to existing requirements including the necessity for services insurers to appoint a claims representative in the State to handle third-party insurance claims.

The Regulations incorporate a number of consumer protection measures including provisions which oblige insurance undertakings to comply with the general good requirements of the State as specified.

These Regulations have the effect of amending or modifying certain provisions of the Insurance Acts, 1909 to 1990, and previous Regulations made under the European Communities Act, 1972 .

SCHEDULE 1

VALUE OF DEPENDANTS

PART I THE SUPPLEMENTARY AMOUNT

"1. Subject to paragraph 2 (1), the supplementary amount in relation to assets of a relevant description held by a dependant of the insurance undertaking shall be determined in accordance with the following formula:

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 non-life insurance 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 non-life insurance 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 the 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 non-life insurance 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 non-life insurance 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 non-life insurance 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 non-life insurance 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 non-life insurance business asset of that undertaking.

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

• (2) Section 4 (4) of Annex III to these Regulations shall not apply with respect to 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 non-life insurance business assets or is not an insurance undertaking and has assets of a relevant description,

( b ) the value of such assets exceeds the permited 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 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 non-life insurance business assets of the controller, if the said subparagraph (3) is being applied in connection with the determination of the value of a non-life insurance business asset of the controller, and to assets which are not non-life insurance 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 Section 2 (1) of this Annex;

( b ) Section 13 of this Annex shall not apply.

"subject company" means the dependant of the insurance undertaking the value of whose assets is being determined in accordance with Section 4 (2) or (3) of this Annex (as the case may be).

SCHEDULE 2

ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT

PART 1

1	2	3	3
Descriptions of Asset	Maximum % of technical reserves which an individual asset in column 1 must not exceed	Maximum % of technical reserves which the aggregate of the assets in column 1 must not exceed	Maximum % of technical reserves which the aggregate of the 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 ascribed which is greater than the aggregate of the value of each of such pieces of land valued separately.	5%	15%	15%
2. Secured debts (other than a listed debenture) due or to become due to the undertaking from
( a ) any one company and any of its connected companies (not being a dependant of the insurance company)	5%
(b) any one unincorporated body of persons	5%	( a ) + (b) 15%	( a ) + (b) 15%
3. 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%	5%	5%
4. Debts (other than listed debentures, debts to which section 5 (3), (4), (5), (6) or (7) applies, and debts of the descriptions specified in paragraphs 2 or 17) which are due or will become due to the undertaking (including debts which would become due 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)	1%
(b) any one unincorporated body of persons not being moneys due from the State or any public body.	1%	( a ) + ( b ) 5%	( a ) + ( b ) 5%
5. Debts due or to become due to the undertaking from an individual (other than debts of the descriptions specified in paragraph 2 (b), 3, 4 (b) above or paragraph 17 below.)	0.25%	2.5%	2.5%
6. Debts due or other rights of the undertaking under any contract of reinsurance as described in Section 5 (4).		50% (subject to not more than 40% of technical reserves being represented by debts which have been outstanding for more than 12 months and not more than 10% by debts which have been outstanding for more than 24 months).	50% (subject to not more than 40% of technical reserves being represented by debts which have been outstanding for more than 12 months and not more than 10% by debts which have been outstanding for more than 24 months).
7. Listed shares, including listed equity shares and listed debentures in any one company and any of its connected companies (not being a dependant of the undertaking).	5%	30%	30%
8. Unlisted shares in any one company and any of its connected companies (not being a dependant of the undertaking).	1%	2.5%	2.5%
9. Computer equipment.	5%	5%	5%
10. Office machinery (other than computer equipment), furniture, motor vehicles and other equipment.	2.5%	2.5%	2.5%
11. Units or other beneficial interest in a unit trust or UCITS approved by the Central Bank as described in Section 9 (a), (b) and (c).	5%	10%	10%
12. Units or other beneficial interest in a scheme as described in Section 9 (d).	10%	20%	20%
13. Any loans to, or deposits with, any one approved credit institution.	33^1/3%	100%	100%
14. Cash in hand.	3%	3%	3%
15. Value of salvage rights or subrogation rights due to the company.	1%	5%	5%

PART II

1	2	3
Descriptions of Asset	Maximum % of net premium income which an individual asset in column 1 must not exceed	Maximum % of net premium income which the aggregate of the assets in column 1 must not exceed
16. Amounts recorded in an insurance undertaking's books as due in respect of premiums (other than premiums in respect of treaty reinsurance accepted) which either—
(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.		30%

PART III

1	2
Descriptions of Asset	Maximum % of technical reserves
17. Debts and shares of the description specified in paragraphs 2, 3, 4, 5, 7 and 8 above or the value of rights under derivative contracts due or to become due from any one company or individual or held in any one company and any of its connected companies to the extent that such debts and shares may be taken into account in accordance with those paragraphs—
( a ) where not more than 40% of the assets to cover the insurance liabilities are invested in loans or securities of issuing bodies and borrowers in each of which it invests more than 5% of its assets	10%
( b ) other than in the circumstances set out in paragraph (a) above.	5%

PART IV

( a ) a subsidiary of that other company, or

( b ) a holding company of that other company, or

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