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SUP App 2.2 Interpretation

SUP App 2.2.1R

For the purpose of SUP App 2.1 to 2.141:

1
  1. (1)

    "capital resources":

    1. (a)

      in relation to a non-directive friendly society, has the meaning given to "margin of solvency" in rule 2.1 of the Friendly Society – Overall Resources and Guarantee Fund part of the PRA Rulebook3;

    2. (b)

      [deleted]2

      112
    3. (c)

      in relation to any other firm3 which is not a Solvency II firm,2 means the firm's capital resources as calculated in accordance with:3

      112
      1. (i)

        3in the case of a dormant asset fund operator4, the version of GENPRU 2.2.17R that applied as at 31 December 2015 (the effect of which has been preserved for the purposes of INSPRU 7); and

      2. (ii)

        3in the case of a non-directive insurer (other than a non-directive friendly society), the PRA Rulebook: Non-Solvency II Firms: Insurance Company – Capital Resources; and

    4. (d)

      in relation to a Solvency II firm means the firm's “eligible own funds” as defined in the PRA Rulebook: Glossary;2

  2. (2)

    [deleted]3

    1. (b)

      [deleted]2

      12
  3. (3)

    "material transaction" means a transaction (when aggregated with any similar transactions) in which:

    1. (a)

      the price actually paid or received for the transfer of assets or liabilities or the performance of services; or

    2. (b)

      the price which would have been paid or received had that transaction been negotiated at arm's length between unconnected parties;

    exceeds:

    1. (c)

      in the case of a firm which carries on long-term insurance business, but not general insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding property-linked liabilities and net of reinsurance ceded; or

    2. (d)

      in the case of a firm which carries on general insurance business, but not long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded; or

    3. (e)

      in the case of a firm which carries on both long-term insurance business and general insurance business:

      1. (i)

        where the transaction is in connection with the firm's long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding property-linked liabilities and net of reinsurance ceded; and

      2. (ii)

        in all other cases, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded; and

  4. (4)

    "required margin of solvency":

    1. (a)

      in relation to a non-directive friendly society, has the meaning given to that term in IPRU(FSOC);

    2. (b)

      in relation to a participating insurance undertaking, means R-S-U, where R, S and U have the meanings given by INSPRU 6.1.45R (3)(c), (d) and (f)1 respectively;

      1
    3. (c)

      in relation to a firm which is not covered by (a) or (b), carrying on general insurance business, means the general insurance capital requirement applicable to that firm; and

    4. (d)

      in relation to a firm which is not covered by (a) or (b), carrying on long-term insurance business, means the long-term insurance capital requirement applicable to that firm.