SUP App 2.2 Interpretation

For the purpose of SUP App 2.1 to 2.141:

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

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   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

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      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

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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;

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   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.