LLD 19.2 Calculation of capital resources requirements

PRU 2.1 applies to the Society in accordance with LLD 16.3.1 R.

PRU 2.1.34 R to PRU 2.1.35 G apply to managing agents in accordance with LLD 16.3.3 R.

For the purposes of PRU 2.1.21 R, the Society must calculate the MCR in respect of the general insurance business of each member as the higher of:

1. (1)

   the member's share of the base capital resources requirement in respect of general insurance business for the members in aggregate; and

2. (2)

   the general insurance capital requirement for the member, calculated according to LLD 19.2.11 R.

For the purposes of LLD 19.2.5R (1), the Society must determine the member's share by apportioning the base capital resources requirement in respect of general insurance business for the members in aggregate between members in proportion to the result for each member of LLD 19.2.11 R.

For the purposes of PRU 2.1.22 R, the Society must calculate the MCR in respect of the long-term insurance business of each member as the higher of:

1. (1)

   the member's share of the base capital resources requirement in respect of long-term insurance business for the members in aggregate; and

2. (2)

   the sum of, for each member:

   1. (a)

      the long-term insurance capital requirement; and

   2. (b)

      the resilience capital requirement.

For the purposes of LLD 19.2.7R (1), the Society must determine the member's share by applying to the aggregate long-term business base capital resources requirement the ratio of the result for the member of LLD 19.2.7R (2) to the aggregate of the results of LLD 19.2.7R (2) for all members.

Subject to PRU 2.1.27 R, the amount of the base capital resources requirement for the members in aggregate is:

1. (1)

   for general insurance business, €3 million; and

2. (2)

   for long-term insurance business, €3 million.

For the purposes of PRU 2.1.30 R, the Society must calculate the general insurance capital requirement for the members in aggregate as the higher of:

1. (1)

   the aggregate for all members of the higher of, for each member, the result of the premiums amount and the claims amount; and

2. (2)

   the brought forward amount.

The Society must determine the general insurance capital requirement for each member by apportioning the result of LLD 19.2.10 R between members on a fair and reasonable basis, provided that the general insurance capital requirement for a member must not be less than the higher of the result of the premiums amount and the claims amount for that member.

The Society must calculate the general insurance capital requirement it would have to determine under PRU 2.1.30 R if it were an insurer carrying on all the general insurance business carried on by its members, but eliminating inter-syndicate reinsurance (the Society GICR).

The Society must determine each member's share of the Society GICR by allocating the Society GICR between the members in proportion to the result for each member of LLD 19.2.11 R.