European Communities (Life Assurance Accounts, Statements and Valuations) Regulations, 1986.

S.I. No. 437/1986 - European Communities (Life Assurance Accounts, Statements and Valuations) Regulations, 1986. ARRANGEMENT OF REGULATIONS. PART I 1. Citation. 2. Application. 3. Interpretation: General. 4. Direction by the Minister. PART II. 5. Periodic actuarial investigation. 6. Amount of liabilities and value of assets. 7. Accounts and returns laid before Annual General Meeting. 9. Deposit of documents with Minister. 10. Lodging of documents; laying before Oireachtas. 11. Penalties. PART III. ACCOUNTS AND STATEMENTS. 12. Application. 13. Annual accounts. 14. Contents and form of accounts. 15. Revenue account. 16. Additional information. 17. Profit and loss account. 18. Balance sheet. 19. Periodic actuarial investigation. 20. Signature of documents. 21. Audit and auditors' report. 22. Certificates. 23. Transitional provisions. PART IV. DETERMINATION OF LIABILITIES. 24. Application. 25. Life assurance business. 26. Life assurance liabilities. 27. Nature and term of assets. 28. Avoidance of future valuation strain. 29. Valuation of future premiums. 30. Acquisition expenses. 31. Rates of interest. 32. Rates of mortality and disability. 33. Expenses. 34. Options. 36. No credit for profits from voluntary discontinuance. PART V. VALUATION OF ASSETS. 37. Interpretation: Part V. 38. Application. 40. Valuation of assets and liabilities of dependants for the purposes of Article 39. 41. Debts and other rights. 42. Land. 43. Equipment. 44. Unlisted securities. 45. Recognised unit trusts. 46. Listed investments. 47. Life interests, reversionary interests etc. 48. Other assets. 49. Assets to be taken into account only to a specified extent. PART VI. IMPLICIT ITEMS. 50. Application. 51. Valuation. 52. Information to be submitted. 53. Future profits: Items comprising the estimated annual profit. 54. Future profits: Average period left to run. 55. Future profits: The multiplying factor. 56. Zillmerising. 57. Hidden reserves. PART VIII. REINSURANCE, MATCHING, LOCALISATION, DOCUMENTS OF TITLE, REGISTER. 58. Interpretation: Part VII. 59. Reinsurance. 60. Matching. 61. Localisation. 62. Documents of title. 63. Register. Schedule 1 Summary of accounts to be completed annually (Forms 1 to 24). Schedule 2 Forms of account and additional information (Forms 1 to 21). Schedule 3 Certificates by auditors, directors and actuary (Forms 22 to 24). Schedule 4 Abstract of valuation report prepared by the appointed actuary (Forms 25 to 30). Schedule 5 Statement of life assurance business by the appointed actuary (Forms 31 to 44). Schedule 6 Value of dependants. Schedule 7 Assets to be taken into account only to a specified extent. S.I. No. 437 of 1986. EUROPEAN COMMUNITIES (LIFE ASSURANCE ACCOUNTS, STATEMENTS AND VALUATIONS) REGULATIONS, 1986. I, MICHAEL NOONAN, Minister for Industry and Commerce, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and the Industry, Trade, Commerce and Tourism (Alteration of Name of Department and Title of Minister) Order, 1986 (S.I. 41 of 1986), and for the purpose of giving effect to Council Directive 79/267/EEC* hereby make the following Regulations: *OJ L63, 13.3.1979, pp 1-18. PART I. PRELIMINARY 1 Citation. 1. These Regulations may be cited as the European Communities (Life Assurance Accounts, Statements and Valuations) Regulations, 1986. 2 Application. 2. (1) These Regulations apply to the accounts, statements and valuations (as hereinafter specified) of every undertaking authorised to transact life assurance business, in respect of the financial year of the undertaking ending in the year in which these Regulations are made (or such later financial year as the Minister may, in respect of a particular undertaking, by direction prescribe) and all subsequent financial years. (2) These Regulations do not apply to a Community undertaking (other than an Irish head office undertaking) or to a Community deposit undertaking, in relation to life assurance business carried on by it outside the State. 3 Interpretation: General. 3. (1) In these Regulations, except where the context otherwise requires— "authorisation" means an authorisation under the Regulations of 1984; "capital at risk" has the meaning assigned to it in the Regulations of 1984; "cede" and "cession" in relation to reinsurance, include retrocede and retrocession; "claim" means a claim against an undertaking under a contract of insurance; "claims payable" means the amount due to be paid by an undertaking during a financial year in respect of claims whether or not paid during that year; "community undertaking" means a life assurance undertaking whose head office is in a member State; "community branch undertaking" means a life assurance undertaking having its head office in the territory of another member State; "community deposit undertaking" means a life assurance under-taking whose head office is not situated in the territory of another member State and whose required community minimum solvency margin is supervised in another member State in accordance with Article 30 of the Directive; "contract of insurance" includes a contract of reinsurance; "deposit back arrangement" in relation to any contract of reinsurance means an arrangement whereby an amount is deposited by the reinsurer with the cedant; "designated assets" has the meaning assigned to it in Article 38 (9); "the Directive" means the EEC Council Directive 79/267/EEC; "direction" means a direction issued by the Minister in accordance with Article 4; "External branch undertaking" means a life assurance undertaking whose head office is not situated in the territory of a member State and which is not a Community deposit undertaking or an Irish deposit undertaking; "financial year" means, in relation to an undertaking, the period in respect of which the accounts of the undertaking are made up, whether that period is a year or not; "gross premiums" in relation to a financial year— ) means premiums after deduction of discounts, refunds, and rebates of premium but before deduction of premiums for reinsurance ceded and of commission payable by the undertaking, and "guarantee fund" has the same meaning as in the Regulations of 1984; "implicit items" has the meaning assigned to it in Article 50; "industrial assurance business" has the meaning assigned to it in the Regulations of 1984; "insurance" includes assurance; European Communities Act, 1972 "insurance agent" means any person who holds an appointment in writing from an insurer to act on behalf of the insurer in relation to a person proposing to effect a policy of insurance, but does not include an insurance broker or an employee of an insurer when the employee is acting for that insurer; "insurance broker" means an insurance broker or a person acting in an equivalent or corresponding capacity, but does not include an insurance agent or an employee of an insurer when the employee is acting for that insurer; "insurer" means the holder of an authorisation under the Regulations of 1984; "intermediary" means an insurance broker, an insurance agent or a person acting in any equivalent or corresponding capacity and any other person acting on behalf of the holder of an authorisation (other than an employee of such holder), or of another person in relation to the insurance business of such holder; "internal linked fund" means an account to which an undertaking appropriates certain linked assets and which may be sub-divided into units the value of which is determined by the undertaking by reference to the value of those linked assets; "Irish deposit undertaking" means a life assurance undertaking whose head office is not situated in the territory of another member State and whose required community minimum solvency margin is supervised in the State in accordance with Article 30 of the Directive; "Irish head office undertaking" means a life assurance undertaking whose head office is in the State; "life assurance" means insurance of a class specified in Schedule 1 to the Regulations of 1984; "life assurance business assets" and "life assurance business liabilities" mean respectively assets of a life assurance undertaking which are, for the time being, identified as representing the life assurance fund or funds maintained by the undertaking in respect of its life assurance business and liabilities of the undertaking which are attributable to its life assurance business; "linked assets" means life assurance business assets of an undertaking which are, for the time being, identified in the records of the undertaking as being assets by reference to the value of which property linked benefits are to be determined; "linked contract" means a contract falling within Class III of life assurance business as specified in Schedule I to the Regulations of 1984 and "non-linked contract" shall be construed accordingly; "management expenses" means expenses incurred in the administration of an undertaking or its business which are not commission payable; "minimum guarantee fund" has the same meaning as in the Regulations of 1984; "minimum solvency margin" has the same meaning as in the Regulations of 1984; "the Minister" means the Minister for Industry and Commerce; "permanent health insurance" has the meaning assigned to it in the Regulations of 1984; "premiums" includes the consideration for the granting of an annuity; "premiums receivable" means— ) in the case of a linked contract the liability under which has been valued on the basis of premiums actually received by the undertaking in a financial year, the amount of premiums received in respect of that contract, and "profit and loss account" in relation to an undertaking not trading for profit, means an income and expenditure account; "property linked benefits" means benefits provided for under any contract the effecting of which constitutes the carrying on of life assurance business, and which are determined by reference to the value of, or the income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or an index of, the value of property of any description (whether or not specified in the contract); "receivable" in relation to income during a financial year, means, unless otherwise specified, such amounts as become due to the undertaking, whether or not received by the undertaking during that year, including (where appropriate) income which has accrued; "the Regulations of 1984" means the European Communities (Life Assurance) Regulations, 1984 (S.I. 57 of 1984); "reinsurance" includes reassurance; "reinsurance" and "reinsurer" include retrocession and retrocessionaire, respectively; "required minimum solvency margin" means the greater of the appropriate required solvency margin and the amount of the appropriate minimum guarantee fund and "required Community minimum solvency margin" and "required Irish minimum solvency margin" shall be construed accordingly; "supervisory authority" means, in respect of any territory, the authority charged by law with the duty of supervising the activities of undertakings in that territory; "undertaking" means the holder of an authorisation under the Regulations of 1984; "unit of account" for the purposes of the Regulations of 1984 and these Regulations, means the ECU used by the European Monetary Co-operation Fund; the conversion value of which, to the currency of the State, shall be, as from 31 December of each year, the rate published in the Official Journal of the Communities for the last day of the preceding October for which conversion values of the ECU were published for the currencies of all States that were then member States; "the valuation date" in relation to an actuarial investigation, means the date to which the investigation relates; "zillmerising" means the method known by that name for modifying the net premium reserve method of valuing a life assurance policy by increasing the part of the future premiums for which credit is taken so as to allow for initial expenses. (2) For the purposes of supplying any information under any Schedule to these Regulations (or in any Form therein) words and expressions used in any such Schedule (or in any Form therein) shall, unless otherwise specified, have the meanings assigned to them in the appropriate Part of these Regulations. (3) In these Regulations, any reference to life assurance business shall, in relation to a Community branch undertaking and a Community deposit undertaking, be taken to refer to life assurance business carried on by it through an agency or branch in the State; and accordingly, any reference to, or requirement imposed in respect of the accounts and balance sheets (including any notes, statements, reports and certificates annexed thereto) shall be taken as referring to, or imposing the requirement in respect of business carried on through that agency or, as the case may be, that branch. (4) In these Regulations, any reference to life assurance business shall— ) in relation to an External branch undertaking, be taken to refer to its entire life assurance business and to any life assurance business carried on by it through an agency or branch in the State; and ) in relation to an Irish deposit undertakings, be taken to refer to its entire life assurance business and to any life assurance business carried on by it through an agency or branch in any member State; and accordingly, any reference to, or requirement imposed in respect of, the accounts and balance sheets (including any notes, statements, reports and certificates annexed thereto) relevant to life assurance business shall be taken as referring to or, as the case may be, imposing the requirement in respect of— (i) accounts prepared in respect of its entire life assurance business, and (ii) accounts prepared in respect of the life assurance business carried on, in the case of an External branch undertaking, by the agency or branch in the State and, in the case of an Irish deposit undertaking, by the agencies or branches in question in the member State taken together. (5) In these Regulations, a reference to a Part, Article or Schedule is to a Part, Article or Schedule of these Regulations and a reference to a paragraph is to the paragraph of the Article in which the reference occurs, unless it is indicated that reference to some other provision is intended. (6) In these Regulations, any reference to a numbered Form is a reference to the Form so numbered in Schedules 1 to 5 below. 4 Direction by the Minister 4. (1) The Minister may, on the application or with the consent of any undertaking, issue a direction in writing that specified provisions of these Regulations shall not apply to the undertaking or shall apply to it with such modifications as may be specified in the direction. (2) A direction may be subject to conditions. (3) A direction may be revoked at any time by the Minister and the Minister may at any time vary the direction on the application or with the consent of the undertaking to which it applies. (4) A direction shall, subject to paragraph (3), apply for such period of time as shall be stated in the direction. PART II. GENERAL. 5 Periodic actuarial investigation 5. (1) Every undertaking which carries on life assurance periodic business— ) shall, once in every period of 12 months, cause an investigation to be made into its financial condition in respect of that business by the person who for the time being is its appointed actuary; and ) when such an investigation has been made, or when at any other time an investigation into the financial condition of the undertaking has been made with a view to the distribution of profits, or the results of which are made public, shall cause an abstract of the actuary's report of the investigation to be made. (2) An investigation to which subparagraph (1) (b) of this Article relates shall include— ) a valuation of the liabilities of the undertaking attributable to its life assurance business; and ) a determination of any excess over those liabilities of the assets representing the fund or funds maintained by the undertaking in respect of that business and, where any rights of life assurance policyholders to participate in profits relate to particular parts of such a fund, a determination of any excess of assets over liabilities in respect of each of those parts. (3) At least once in every period of 5 years an undertaking to which paragraph (1) applies shall prepare a statement of its life assurance business at the date to which the accounts of the undertaking are made up for the purposes of an investigation in pursuance of subparagraph (a) of that paragraph. (4) For the purposes of any investigation to which this Article applies, the amount of any liabilities and the value of any assets shall be determined in accordance with Parts IV and V, as appropriate. 6 Amount of liabilities and value of assets 6. Unless otherwise provided in these Regulations, in the documents which an undertaking is required to prepare in accordance with these Regulations— ) the amount or value given for a liability or an asset of the undertaking shall be the amount or value of that liability or asset as determined in accordance with the provisions of Parts IV and V, as appropriate; ) where there are no applicable valuation regulations, then, (i) in the case of asset of the undertaking other than a linked asset, the value given shall be the value which the asset would have if valuation regulations were applicable, and (ii) in the case of a linked asset of the undertaking, the value given shall be the value of that asset as determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance undertakings. 7 Accounts and returns laid before Annual General Meeting 7. (1) Every undertaking shall forward to the Minister each year two copies of the accounts and returns laid before its annual general meeting (or the annual general meeting of the body of which it is a branch or agency) for that year. (2) The accounts and returns referred to in paragraph (1) shall be forwarded not later than one month after the annual general meeting. 8. 9 Deposit of documents with Minister. 9. (2) One of the copies of any document deposited under paragraph (1) shall be signed by the appropriate person or persons described in Article 20. (3) The Minister shall consider the documents deposited under paragraph (1), and if any such document appears to him to be inaccurate or incomplete in any respect he shall communicate with the undertaking with a view to the correction of any such inaccuracies and the supply of deficiencies. (5) In these Regulations, any reference to an account or balance sheet includes a reference to any note, statement, report of certificates annexed thereto giving information authorised or required by virtue of Part III of these Regulations to be so given. 10 Lodging of documents; laying before Oireachtas 10. (1) Any document submitted to the Minister under these Regulations shall be lodged in the Companies Registration Office and shall there be open to inspection by any person, and copies of such documents may be procurred by any person on payment of such fees as the Minister may from time to time fix. (2) The Minister shall, as soon as may be, lay before each House of the Oireachtas copies of all documents submitted to him under these Regulations and may append to such documents any explanatory statement by or commentary which he thinks fit. 11 Penalties. 11. (1) A person (within the meaning of the Regulations of 1984) who fails to comply with any provision of these Regulations shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding IR£1,000. (2) Where an offence under these Regulations is committed by a body corporate and is proved to have been so committed with the consent or connivance of or to be attributable to any neglect on the part of a director, manager, secretary or other officer of the body corporate, the director, manager, secretary or other officer or any person purporting to act in such capacity shall, as well as the body corporate, be guilty of an offence and shall be liable to be proceeded against and punished accordingly. (3) A prosecution for an offence under these Regulations may be brought by the Minister. PART III. ACCOUNTS AND STATEMENTS. 12 Application. 12. This Part applies with respect to the accounts and statements (as hereinafter specified) required to be prepared by every undertaking pursuant to Article 23 (1) and (2) of the Regulations of 1984 and these Regulations. 13 Annual accounts. 13. Every undertaking shall, in respect of each financial year of the undertaking, prepare such of the accounts prescribed in Schedule 1 as are appropriate to the undertaking. 14 Contents and form of accounts. 14. Every account, balance sheet, note, statement, report and certificate required to be prepared by an undertaking pursuant to Article 13 shall be prepared in the manner hereinafter specified and shall fairly state the information provided on the basis required by these Regulations. 15 Revenue account 15. The revenue account required to be prepared by every undertaking pursuant to Article 13 shall comply with the requirements of Schedule 2 and shall be in Form 1 completed (as may be appropriate) as specified in the instructions to that Form so, however, that— (i) every such undertaking shall prepare a separate account in Form 1 in respect of each life assurance business fund maintained by it, and (ii) where there is more than one fund for life assurance business or for industrial assurance business, the undertaking shall also prepare a summary form for life assurance business or for industrial assurance business as the case may require. 16 Additional information. 16. Every undertaking shall, in accordance with Article 13 and Schedule 2, including the instructions thereto, prepare— ) in respect of life assurance business— (i) Forms 2 to 4 and 6, and (ii) Such of Forms 8 to 14 and 21 as are appropriate; ) in respect of industrial assurance business— (i) Forms 2, 3, 5 and 7 to 9, and (ii) Such of Forms 10 to 14 and 21 as are appropriate. 17 Profit and loss account. 17. The profit and loss account required to be prepared by every undertaking under Article 13 shall comply with the requirements of Schedule 2 and shall be prepared in Form 18. 18 Balance sheet. 18. The balance sheet required to be prepared by every undertaking in accordance with Article 13, shall comply with the requirements of Schedule 2 and shall be in Forms 15 to 17, 19 and 20 completed (as may be appropriate) as specified in the instructions to those Forms. 19 Periodic actuarial investigation. 19. Save in relation to subparagraph ( ) (ii) of this paragraph, for the purposes of Article 5, life assurance business and industrial assurance business shall be treated separately and— ) the abstract of the report of the actuary on life assurance business— (i) shall comply with the requirements of Schedule 4 and shall contain the information (together with such of Forms 25 to 28 as may be appropriate) specified in that Schedule, and (ii) except in the case of a Community branch undertaking and a Community deposit undertaking shall also include Form 30 and, where appropriate, Form 29; and ) the statement of life assurance business shall comply with the requirements of Schedule 5 and shall contain the information (together with Forms 31 to 44) specified in that Schedule. 20 Signature of documents. 20. (1) One of the copies of any document required to be prepared in accordance with this Part, except an auditors' report, shall be signed by persons described in paragraph (2) or (3). (2) In respect of any document relating to business carried on through an Irish head office undertaking, the copy shall be signed by— ) in any case— (i) where there are more than two directors of the undertaking, at least two of those directors and, where there are not more than two directors, all the directors; and (ii) the chief executive, if any, of the undertaking or (if there is no chief executive) the secretary; ) in the case of an abstract or statement under Article 5, the actuary who made the investigation to which the abstract relates or by reference to which the statement was prepared. (3) In respect of any document relating to business carried on through an agency or branch in the state by a Community branch undertaking, Community deposit undertaking or an External branch undertaking or through agencies or branches in any Member State taken together by an Irish deposit undertaking, the copy shall be signed by— ) in any case— (i) the authorised agent referred to in Article 12 (1) ( ) or 28 (1) ( ) of the Regulations of 1984 or, where the representative is a legal person, the person designated in Article 12 (2) of the Regulations of 1984; and (ii) an officer or employee of the undertaking who, either alone or jointly with others, is responsible for the conduct of the whole of the insurance business carried on by the undertaking in the State and employed at the office of the undertaking in accordance with Article 4 (2) ( ) of the Regulations of 1984; and (iii) a member of the board of directors or governing body of the undertaking; ) in the case of an abstract or statement under Article 5, the actuary who made the investigation to which the abstract relates or by reference to which the statement was prepared. (4) One of the copies of any auditors' report shall be a copy signed by the auditor. 21 Audit and auditors' report. 21. The documents referred to in Articles 15, 16, 17 and 18 and the certificate referred to in Article 22 ( 22 Certificates 22. There shall be annexed to the documents referred to in Articles 15, 16, 17 and 18— ) a certificate in accordance with the requirements of Part 2 of Schedule 3 and shall be in Form 23 which shall be signed by the persons required by Article 20 to sign the documents to which the certificate relates; and ) a certificate in accordance with the requirements of Part 3 of Schedule 3 and shall be in Form 24 which shall be signed by the appointed actuary. 23 Transitional provisions. 23. (1) An undertaking shall not be required to include in any account or balance sheet prepared in accordance with this Part, any information relating to the financial year of the undertaking immediately preceding that financial year to which these Regulations first apply. PART IV. DETERMINATION OF LIABILITIES. 24 Application. 24. 25 Life assurance business. 25. (1) Subject to this Part, the amount of liabilities of an undertaking shall be determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for undertakings. 26 Life assurance liabilities. 26. The determination of the amount of life assurance liabilities ( other than liabilities which have fallen due for payment before the valuation date) shall be made on actuarial principles and shall make proper provision for all liabilities on prudent assumptions in regard to the relevant factors; and that amount shall in the aggregate not in any case be less than the amount calculated in accordance with Articles 27 to 36. 27 Nature and term of assets. 27. The determination of the amount of life assurance liabilities shall take into account the nature and term of the assets representing the life assurance fund and the value placed upon them and shall include appropriate provision against the effects of possible future changes in the value of the assets on their adequacy to meet the liabilities. 28 Avoidance of future valuation strain. 28. 29 Valuation of future premiums. 29. (2) Where further specified premiums are payable by the policyholder under a contract (not being a linked life assurance contract) under which benefits (other than benefits arising from a distribution of profits) are determined from the outset in relation to the total premiums payable thereunder, then, subject to Article 30— ) where the premiums under the contract are at a uniform rate throughout the period for which they are payable, the premiums to be valued shall be not greater than such level premiums as, if payable for the same period as the actual premiums under the contract and calculated according to the rates of interest and rates of mortality or disability which are to be employed in calculating the liability under the contract, would have been sufficient at the outset to provide for the benefits under the contract according to the contingencies upon which they are payable, exclusive of any additions for profits, expenses or other charges; ) where the premiums under the contract are not at a uniform rate throughout the period for which they are payable, the premiums to be valued shall be not greater than such premiums as would be determined on the principles set out in subparagraph ( ) of this paragraph modified as appropriate to take account of the variations in the premiums payable by the policyholder in each year; save that a premium to be valued shall in no year be greater than the amount of the premium payable by the policyholder. (3) Where the terms of the contract have changed since the contract was first made (the terms of the contract being taken to change for the purposes of this paragraph if the change is indicated in an endorsement on the policy but not if a new policy is issued), then, for the purposes of paragraph (2), it shall be assumed that those changes from the time they occurred were provided for in the contract at the time it was made. (5) Where under a contact (not being a linked life assurance contract)— ) each premium paid increases the benefits (other than benefits arising from a distribution of profits) provided under the contract, or ) the amount of a premium payable in future is not determinable until it comes to be paid, future premiums and the corresponding liability may be left out of account so long as adequate provision is made against any risk that the increase in the liabilities of the company resulting from the payment of future premiums might exceed the amount of the premiums. 30 Acquisition expenses. 30. (1) In order to take account of acquisition expenses, the maximum annual premium to be valued under Article 29 may (subject to paragraph (2)) be increased by an amount not greater than the equivalent, taken over the whole period of premium payments and calculated according to the rates of interest and rates of mortality or disability employed in valuing the contract, of 3.5 per cent (or the defined percentage, if it is lower than 3.5 per cent) of the relevant capital sum under the contract. (3) The increase permitted by paragraph (1) shall be subject to the limitation that the amount of a future premium valued shall not in any event be greater than the amount of the premium actually payable by the policyholder. (4) For the purposes of this Article— ) in the case of temporary assurances, the relevant capital sum shall be the sum assured on the valuation date. 31 Rates of interest. 31. (1) In determining the rates of interest to be used in calculating the present value of future payments by or to an undertaking, regard shall be had to the yields on the existing assets attributed to the life assurance business and, to the extent appropriate, to the yield which it is expected will be obtained on sums to be invested in the future. (2) For the purposes of paragraph (1), the assumed yield on an asset attributed to the life assurance business, before any adjustment to take account of the effect of taxation, shall not exceed the yield on that asset calculated in accordance with paragraphs (3) to (6), reduced by 7.5 per cent of that yield. (3) For the purpose of calculating the yield on an asset— ) the asset shall be valued in accordance with Part V excluding any provision under which assets may be taken at lower book values for the purposes of any investigation to which Article 5 applies, and ) where a particular asset is required to be taken into account only to a specified extent by the operation of Article 49, the future income to be taken into account (whether interests, dividends or repayments of capital) shall be correspondingly reduced. (4) For fixed interest investments (that is to say, investments which are fixed interest securities as defined in Article 37 (1)) the yield on an asset, subject to paragraph (6), shall be that annual rate of interest which if used to calculate the present value of future payments of interest before the deduction of tax and the present value of repayments of capital, would result in the sum of those amounts being equal to the value of the asset. (5) For variable interest investments (that is to say, investments which are not fixed interest securities as defined in Article 37 (1)) the yield on an asset, subject to paragraph (6), shall be the ratio to the value of the asset of the income before deduction of tax which would be received in the period of twelve months following the valuation date on the assumption that the assets will be held throughout that period and that the factors which affect income will remain unchanged, so however that account shall be taken of any changes in those factors known to have occurred by the valuation date and in particular, without prejudice to the generality of the foregoing, of— ) any forecast changes in dividends which have been publicly announced by the valuation date, ) the effect of any alterations in capital structure, and ) the value (at the most recent date for which it is known at the valuation date) of any determinant of the amount of any future interest payment, the said value being deemed to remain unaltered for all subsequent dates. (6) In calculating the yield on an asset under this Article— ) in making these adjustments, regard shall be had wherever possible to the yields on risk-free investments of a similar term in the same currency. (7) To the extent that it is necessary to make an assumption about the yields which will be obtained on sums to be invested in future, the yield assumed on any investment to be made more than three years after the valuation date shall not exceed 7.5 per cent per annum (before any adjustment to take account of the effect of taxation) or such other lower percentage as the Minister may from time to time determine. (8) In no case shall a rate of interest determined for the purposes of paragraph (1) exceed the adjusted overall yield on assets calculated as the weighted average of the reduced yields on the individual assets arrived at under paragraph (2); and when that weighted average is calculated— ) the weight given to each investment shall be its value as an asset determined in accordance with Part V excluding any provision under which assets may be taken at lower book value for the purposes of any investigation to which Article 5 applies, and ) except in relation to the rate of interest used in valuing payments of property linked benefits both the yield and the value of any linked assets shall be omitted from the calculation. 32 Rates of mortality and disability. 32. The amount of the liability in respect of any category of contract shall, where relevant, be determined on the basis of appropriate rates of mortality and disability that take into account— ) relevant published tables of rates of mortality and disability, and 33 Expenses. 33. (2) The provision mentioned in paragraph (1) shall have regard to, among other things, the undertaking's actual expenses in the last twelve months before the valuation date and the contingency that the undertaking may cease to transact new business. 34 Options. 34. (2) Where a contract includes an option whereby the policyholder could secure a guaranteed cash payment within twelve months following the valuation date, the provision for that option shall be such as to ensure that the value placed on the contract is not less than the amount required to provide for the payments that would have to be made if the option were exercised. 35. No contract for life assurance business shall be treated as an asset. 36 No credit for profits from voluntary discontinuance. 36. Allowance shall not be made in the valuation for the voluntary discontinuance of any contract if the amount of the liability so determined would thereby be reduced. PART V. VALUATION OF ASSETS. 37 Interpretation: Part V 37. (1) In this Part, unless the context otherwise requires— "approved financial institution" means any of the following— ) the Central Bank of Ireland, ) a licensed bank within the meaning of section 9 of the Central Bank Act, 1971 ) the European Investment Bank, the Commission of the European Communities, and the European Coal and Steel Community, ) the Post Office Savings Bank, ) The Agricultural Credit Corporation plc, ) Industrial Credit Corporation plc; "approved securities" means any of the following— ) securities of the Government (including Savings Certificates), ) securities guaranteed as to capital and interest by the Minister for Finance, ) debentures, debenture stock, certificates of charge or other forms of security issued by and charged on all or any of the property or revenues of the Electricity Supply Board, Coras Iompair1 Éireann, The Agricultural Credit Corporation plc, Bord na Mona, Aer Linte Eireann Teoranta, Aer Lingus Teoranta, Aer Rianta Teoranta, The Housing Finance Agency, Bord Gais Eireann, An Post, Bord Telecom Eireann, Irish Telecommunications Investments Limited and Industrial Credit Corporation plc. ) stocks, securities or mortgages issued by and charged on all or any of the property or revenues of a local authority, ) any loan to, or deposit with, an approved financial institution, being an investment authorised by section 1 (inserted by section 1 of the Trustee (Authorised Investments) Act, 1958 ) of the Trustee Act, 1893, as varied by order under section 2 of the said Act of 1958, ) securities issued and guaranteed by the Government of a member State and, with the approval of the Minister, like assets outside a member State. "asset" includes part of an asset; "Associated Bank" means an associated bank within the meaning of section 12 of the Central Bank Act, 1942 "company" includes any body corporate; "computer equipment" means the electro-mechanical and electronic units which made up a computer configuration; "debenture" includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes; "debenture option" means a right exercisable within a specified period, at the option of the holder of the right, to acquire or dispose of any debenture at a specified price; "debt" includes an obligation to pay a sum of money under a negotiable instrument; "dependent" has the meaning assigned to it in paragraph (2); "fixed interest securities" means securities which under their terms of issue provide for fixed amounts of interest; "listed" means, in relation to an investment— ) that there has been granted and not withdrawn a listing in respect of that investment on a recognised stock exchange, or ) that dealings in that investment are effected in a securities market recognised by the Minister, being a market in which prices of all securities in which there are dealings are publicly listed and which are supervised by a public body, and "unlisted" shall be construed accordingly; "local authority" means any of the following authorities in the State— ) a County Council, ) a Corporation of a County Borough, ) the Corporation of Dun Laoghaire; "middle market quotation" means— ) in relation to an investment for which two prices are quoted in the official list published for the relevant market, the average of the two prices so quoted for the relevant date or, if no official list has been published for that day, for the most recent day prior to that day for which the official list has been published, and ) in relation to an investment for which one price is quoted in the official list published for the relevant market, the price so quoted for the relevant date or, if no official list has been published for that day, for the most recent day prior to that day for which the official list has been published, and ) in any other case, the nearest equivalent to the average referred to in paragraph ( ) which is published or can be reasonably ascertained from information which is published; "non-life insurance" means insurance of a class specified in Schedule I to the Regulations of 1976; "non-life insurance business amount" means the aggregate of the undertaking's non-life insurance business liabilities less the aggregate of the following— ) the amount of any non-life insurance business liabilities of the undertaking to related companies, other than insurance liabilities, and "non-life insurance business assets" and "non-life insurance business liabilities" mean respectivley assets of a non-life insurance undertaking which are, for the time being, identified as representing the non-life insurance liabilities of the undertaking in respect of its non-life insurance business and liabilities of the undertaking which are attributable to its non-life insurance business; "price earnings ratio" means— ) for the industrial sector, the price earnings ratio (net) estimated in respect of the Industrial Group index of the Irish Times Cara Indices, and ) for the non-industrial sector, the price earnings ratio (net) estimated in respect of the Financial Group index of the Irish Times Cara Indices, or "proper valuation" means, in relation to land, a valuation made by a qualified valuer not more than one year before the relevant date which determined the amount which would be realised at the time of the valuation on an open-market sale of the land free from any mortgage or charge; "qualified valuer", in relation to any particular type of land in any particular area, means— ) a person who is a fellow of the Society of Chartered Surveyors in the Republic of Ireland or the Royal Institution of Chartered Surveyors and either— (i) has knowledge of and experience in the valuation of that particular type of land in that particular area, or (ii) has knowledge of and experience in the valuation of land and has taken advice from a valuer who he is satisfied has knowledge of and experience in the valuation of that particular type of land in that particular area, or ) a person who is approved for the time being by the Minister for the purposes of these Regulations; "recognised stock exchange" is a stock exchange recognised by the Minister; "the Regulations of 1976" means the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. 115 of 1976); "related company" means, in relation to an insurance undertaking— ) a dependent of the insurance undertaking, or ) a company of which the insurance undertaking is a dependant, or ) a dependent of a company of which the insurance undertaking is a dependant; "relevant dateratio" means, in relation to the valuation of any asset for any purpose for which this Part applies, the date when the asset falls to be valued for that purpose; "securities" has the meaning assigned to it by section 2 of the Central Bank Act, 1971 (2) For the purposes of these Regulations, a company is a dependant of an other company if— ) that other company, either alone or with any associate or associates, is entitled to exercise, or control the exercise of 20 per cent or more of the equity voting rights at any general meeting of the first-mentioned company, or ) the first-mentioned company is a dependant of any company which is that other company's dependant. 38 Application. 38. (3) Any asset to which this Part applies (other than cash) for the value of which no provision is made in this Part shall be left out of account for the purpose of representing the life assurance business amount as defined in Article 49 (5). (4) Where in accordance with this Part the value of any asset is to be not greater than any specified amount and, in all the circumstances of the case, it appears that the asset is of a lesser value than that amount, such lesser value shall be the value of the asset. (5) Notwithstanding paragraph (1) (but subject to the conditions set out in paragraph (6)), an undertaking may, for the purposes of an investigation to which Article 5 applies, elect to assign to any of its assets the value given to the asset in question in the books or other records of the undertaking. (6) The conditions referred to in paragraph (5) are— ) that the election shall not enable the undertaking to bring into account any asset for the valuation of which no provision is made in this Part; ) that the value assigned to the aggregate of the assets shall not be higher than the aggregate of the value of those assets as determined in accordance with Articles 39 to 49. (7) ( ) If the Minister is not satisfied as to the valuation of any asset or assets submitted to him he shall notify the undertaking accordingly. ) Failing agreement between the undertaking and the Minister on the value placed on the asset or assets by the undertaking, the Minister may call on an independent expert for the purposes of expressing an opinion on the value of the asset or assets in question. ) The independent expert appointed in accordance with subparagraph ( ) shall have regard to the provisions of these Regulations. ) The valuation placed on the asset or assets by the independent expert shall be final. ) The costs of any such independent valuation shall be borne by the undertaking. (8) Notwithstanding the provision of paragraph (7), the Minister may appoint an independent expert for the purpose of expressing an opinion on the value of any asset or assets of an undertaking. (9) For the purposes of these Regulations— "designated assets" means assets which are admissible in accordance with this Part as representing the life assurance business amount as defined in Article 49 (5). 39. (1) In this Article, Article 40 and Schedule 6— "insurance undertaking" means the holder of an authorisation under the Regulations of 1984 or the Regulations of 1976. (3) In this Article, "net asset value" means, in relation to a dependant, the amount by which the value of its assets, as determined in accordance with Article 40, exceeds the amount of its liabilities as determined in the case of a dependant which is an insurance undertaking, in accordance with Article 40. (4) The value of any debt due, or to become due to an insurance undertaking from a dependant (other than a debt to which Article 41 (2) or (3) applies) shall be the amount which would reasonably be expected to be recovered in respect of that debt (due account being taken of any security held in respect thereof) if the dependant were in liquidation and— ) 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 Article 40, and ) in the case of a dependant which is not an insurance undertaking, the amount realised from its assets in the liquidation were equal to the value of those assets, as determined in accordance with the said Article 40. ) in which there is no excess of assets over liabilities as is mentioned in paragraph (2), or ) in relation to which an insurance undertaking cannot reasonably ascertain the amount of the liabilities of the dependant for the purposes of paragraph (2), shall be left out of account for the purposes for which this Part applies.

(6) Where an insurance undertaking is unable to determine the value of any debt due or to become due to the undertaking from a dependant because it cannot reasonably ascertain the amount of the liabilities of the dependant for the purpose of ascertaining what would reasonably be expected to be recovered in respect of that debt in accordance with paragraph (3), the debt shall be left out of account for the purposes for which this Part applies. 40 Valuation of assets and liabilities of dependants for the purposes of Article 39. 40. (1) This Article shall apply with respect to the determination of the value of the assets and the amount of the liabilities of a dependent for the purposes of Article 39. (2) In the case of a dependant which is an insurance undertaking, ) subject to paragraph (4) and paragraph 3 of Schedule 6, the value of its assets shall be determined in accordance with this Part; ) subject to paragraph ( ), ( ), ( ), and ( ), the amount of its liabilities shall be determined in accordance with Part IV; ) 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 20 per cent of the non-life insurance premium income; ) 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 Article 18 of the Regulations of 1984; (ii) an amount which is six times the first amount, reduced by the implicit figure within the meaning of subparagraph ( (iii) 800,000 units of account; ) for the purposes of subparagraph ( ) (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 or hidden reserves which the dependant is permitted to count by virtue of a direction under Article 4 and the application of Article 17 (2) ( ) of the Regulations of 1984 and Part VI of these Regulations; (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 4 and by applying Article 17 (2) ( ) of the Regulations of 1984 and part VI of these Regulations; (3) In the case of a dependant which is not an insurance undertaking— ) 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 6. ) 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 ) 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. (4) Where— ) 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; ) the value of such assets exceeds the permitted limit applicable to the dependant in relation to those assets, and ) 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 subparagraph ( ) an amount equal to the supplementary amount determined in accordance with Part 1 of Schedule 6. (5) In this Article and Schedule 6 — "assets of a relevant description" means assets of a description specified in Part 1 of Schedule 7 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; "insurance undertaking" has the meaning assigned to it in Article 39; "permitted limit" means, in relation to assets of a relevant description— ) in the case of the insurance undertaking, or a dependant which carries on life assurance business, an amount equal to the percentage of the life assurance business amount applicable in relation to assets of that description in accordance with Article 49 (as applied in the case of a dependant pursuant to paragraph (2) of this Article); ) in the case of the insurance undertaking, or a dependant which carries on non-life insurance business, an amount equal to the percentage of the non-life insurance business amount, as defined in Article 37 (1), applicable in relation to assets of that description in accordance with Article 49 (as applied pursuant to paragraph (2) of this Article); and ) in the case of a dependant which is not an insurance undertaking, an amount equal to the percentages specified in Schedule 7, 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 7, 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 7, 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 dependent of a description specified in paragraphs 3 to 15 of Schedule 7, assets of that other company which, if held by the dependant, would be assets of that description. (6) Save as otherwise provided in paragraph 3 (5) of Schedule 6, references in this Article and in Schedule 6 to assets of the insurance undertaking being of a relevant class mean— ) where this Article and Schedule 6 are being applied for the purpose of determining the value of a life assurance business asset of the insurance undertaking, assets of the insurance undertaking which are life assurance business assets, and ) in any other case, assets of the insurance undertaking which are not life assurance business assets. (7) Where the insurance undertaking cannot reasonably ascertain in accordance with the provisions of this Article— ) the value of any asset of the dependant, or ) 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 Article. 41 Debts and other rights. 41. (1) The value of any debt due, or to become due, to an undertaking, other than a debt to which Article 39 (3), paragraph (2), (3) or (4) of this Article or Article 46 or 48 applies, shall be— ) in the case of any such debt which is due, or will become due, within twelve months of the relevant date (including any debt which would become due within that period if the undertaking were to exercise any right to which it is entitled to require payment of the same), 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 ) 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 together with the benefit of any security held in respect thereof: Provided that, in determining the amounts referred to in subparagraphs ( ) and ( ), no account shall be taken of any letter of credit. (2) The value of any debt due, or to become due, to the undertaking which is secured on a policy of insurance issued by the undertaking and which (together with any other debt secured on that policy) does not exceed the amount payable on a surrender of that policy at the relevant date shall be the amount of that debt. (3) Any debt due or to become due to the undertaking— ) 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 ) under a letter of credit, shall be left out of account for the purposes for which this Part applies. (4) The value of any debt due to, or other rights of, the undertaking under any contract of reinsurance to which the undertaking is a party (other than a debt to which Article 39 (3) applies) shall be the amount which can reasonably be expected to be recovered in respect of that debt or right. 42 Land. 42. The value of any land of an undertaking (other than land held by the undertaking as security for a debt or to which Article 47 applies) shall be not greater than the amount which (after deduction of the reasonable expenses of sale) would be realised if the land were sold at a price equal to the most recent proper valuation of that land which has been provided to the undertaking and any such land of which there is no proper valuation shall be left out of account for the purposes for which this Part applies. 43 Equipment. 43. (1) The value of any computer equipment of an undertaking— ) 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; ) in the first financial year thereafter, shall be not greater than one-half of that cost; ) in the second financial year thereafter, shall be not greater than one-quarter of that cost; and ) in any subsequent financial year, shall be left out of account for the purposes for which this Part applies. (2) The value of any office machinery (other than computer equipment), furniture, motor vehicles and other equipment of an undertaking, shall be, in the financial year of the undertaking in which it is purchased, not greater than one-half of the cost thereof and shall be, in any subsequent financial year, left out of account for the purposes for which this Part applies. 44 Unlisted securities. 44. (2) The value of any unlisted security which is dealt in on a recognised stock exchange shall be an amount not greater than the middle market quotation. (4) For the pruposes of this Article th avrage amount of the profits of a compny forany specified years shall be the amount represented by th formula ) P is the aggregate amount of the profits of the company after provision for taxation in each of the specified years, ) 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 no profits, and ) 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. ) 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 ) 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. ) no amount is attributable thereto in accordance with paragraph (3), 45 Recognised unit trusts. 45. The value of any holding of units, or other beneficial interest, under 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 under a unit trust which is a registered unit trust scheme within the meaning of section 3 of the Unit Trusts Act, 1972 shall be the price at which the managers under the unit trust would purchase the holding of units or other beneficial interest if required to do so. 46 Listed investments. 46. ), shall be the middle market quotation. (i) the middle market quotation on the day before the day the suspension came into force, and (ii) the middle market quotation on the day after the day the suspension was terminated. (3) For the purposes of paragraph (2), a day which is a Saturday or a Sunday or a bank holiday shall be disregarded. 47 Life interests, reversionary interests etc. 47. The value of any asset consisting of an interest in property which— ) is determinable upon the death of any person or upon the happening of some other future event or at some future time or is a remainder, reversionary interest, right of fee subject to a life-rent or other future interest, whether vested or contingent, and ) is not at lease or reversionary interest expectant upon the determination of a lease, shall be the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof. 48 Other assets. 48. (1) The value of any approved securities shall be— ) in the case of a listed securities, the middle market quotation together with any interest accrued thereon; ) 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 ) in any other case, the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof. (2) The value of— shall be the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof. (3) The value of traded options shall be the middle market quotation. 49 Assets to be taken into account only to a specified extent. 49. (1) This Article shall not apply to any approved securities or to any interest accrued thereon except insofar as it relates to the limitations applied to any loans to, or deposits with any one approved financial institution specified in Schedule 7. (2) Assets or categories of assets of an undertaking of any of the descriptions specified in Schedule 7 shall be taken into account, for the purpose of representing the life assurance business amount, only to the extent that the value of those assets or categories of assets does not exceed— ) for an individual asset of a description specified in column 1, Part I, an amount equal to the percentage of the life assurance business amount specified in column 2 for an asset of that description; ) for the aggregate of assets of a description specified in column 1, Part I, an amount equal to the percentage of the life assurance business amount specified in column 3 for assets of that description; ) for an individual asset of the description specified in column 1, Part II, an amount equal to the percentage of the net premium income of the undertaking specified in column 2 (other than premiums in respect of treaty reinsurance accepted) for the twelve months preceding the relevant date; ) for the aggregate of the assets of the description specified in column 1, Part I, 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); (3) In no case shall the aggregate of the assets of a description specified in column 1, Part III, of Schedule 7, exceed that proportion of the life assurance business amount specified in column 2 of that Part. (4) Without prejudice to paragraph (2) of this Article an undertaking may hold other assets not listed in this Part or in Schedule 7 or may hold amounts of those assets in Schedule 7 which exceed the percentage limits specified, if it so wishes, but the amount of such assets cannot be put forward by the undertaking as representing the life assurance business amount. (5) In this Article— "life assurance business amount" means the aggregate of the undertaking's life assurance business liabilities less the aggregate of the following— ) the amount of any life assurance business liabilities of the undertaking to related companies, other than life assurance liabilities, and "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. (7) Where— ) an asset (or group of assets) of an undertaking carrying on life assurance business is attributed by the undertaking partly to its life assurance business assets and partly to its other assets, and ) by virtue of paragraph (2) there is a reduction in the extent to which that asset or group of assets is to be taken into account, the reduction shall be in the same proportion as the attribution. (8) For the purposes of this Article, the amount of the liabilities of an undertaking shall be determined in accordance with Part IV. PART VI. IMPLICIT ITEMS 50 Application. 50. This Part relates to an undertaking which makes an application to the Minister under paragraph ( ) of Article 17 (2) of the Regulations of 1984 and, in this Part, references to implicit items are to amounts relating to future profits, zillmerising and hidden reserves mentioned in that paragraph. 51 Valuation. 51. (1) Implicit items shall have no value except with the consent of the Minister given by diretion in writing on an application made under paragraph ( ) of Article 17 (2) of the Regulations of 1984. In pursuance of such a direction implicit items shall be valued in accordance with that paragraph and this Part of these Regulations. (2) Article 4 applies to a direction under this Article. 52 Information to be submitted. 52. An application under paragraph ( ) of Article 17 (2) of the Regulations of 1984 shall be accompanied by such information as may be requested by the Minister in order to enable him to decide whether a direction under Article 51 should be issued and in particular shall include the following— ) in the case of a future profits item, a certificate signed by the appointed actuary confirming that the amount for which approval is sought does not exceed the lower of— (i) the amount calculated in accordance with Article 17 (2) ( ) (i) of the Regulations of 1984 and this Part of these Regulations, and (ii) the present value of the profits that may be expected to arise in the future on the life assurance business in force on the valuation date; ) in the case of zillmerising, a certificate from the appointed actuary confirming that the amount for which approval is sought has been calculated in accordance with Article 17 (2) ( ) (ii) of the Regulations of 1984 and this Part of these Regulations. 53 Future profits: Items comprising the estimated annual profit. 53. (1) For the purposes of Article 17 (2) ( ) (i) of the Regulations of 1984 the estimated annual profit shall be taken to be one-fifth of the profits made in the life assurance business over the period of five years ("the relevant period") ending on the last day of the most recent financial year for which an investigation under Article 5 has been carried out, substantial items of an exceptional nature being excluded. (2) For the purposes of paragraph (i)— ) Where an investigation under Article 5 has been carried out annually in relation to the relevant period, the profits made in life assurance business for any particular year of the relevant period shall be taken to be the surplus (if any) arising in the life assurance fund since the last such investigation, and the profits so made for that period shall be taken to be the aggregate of those surpluses less any deficiencies in the life assurance fund during that period; ) where an undertaking has carried on life assurance business throughout the relevant period but investigations under Article 5 have not been conducted annually in that period, the profits so made for that period shall be taken to be the aggregate of surpluses arising in the life assurance fund since the last investigation preceding the commencement of the relevant period less any deficiencies in the life assurance fund since that last investigation, except that the surplus or deficiency arising in the period ending with the first investigation within the relevant period shall be proportionately reduced to allow for any period of time falling outside the relevant period; ) where an undertaking has not carried on life assurance business throughout the relevant period, the profits made in life assurance business for the relevant period shall be taken to be the aggregate of any surpluses arising in the life assurance fund during that part of the relevant period for which life assurance business was carried on less any deficiencies in the life assurance fund during that part of that period. 54 Future profits: Average period left to run. 54. (1) The average period left to run on policies at the date of calculation of the solvency margin required for the purposes of Article 17 (2) ( (2) For the purposes of paragraph (1), weighting shall be based on the net single premium attaching to such policies but undertakings may use a method of calculation which involves a degree of approximation where such method is shown to the Minister's satisfaction to give similar results. (3) Undertakings may dispense with the detailed requirements of paragraph (2) for classes of policies of minor importance, the results of which would have no significant effect on the average period to run for the undertaking concerned. (4) In paragraph (1) a "period to run" means— ) for whole life assurances, the expectation of life, ) for open ended whole-life assurance, the expectation of life, ) for endowment assurances and pure endownments, the period to the fixed maturity date, ) for flexible endowments, the period to the first date of a guaranteed cash option, ) for temporary assurances, the period to the expiry date, ) for deferred annuities with cash options, the period to the vesting date; where the annuity can be taken at any age falling within a prescribed range, the earliest date, ) for deferred annuities without cash options, the expectation of life for the age attained, ) for annuities in payment, the expectation of life; for temporary annuities, the period to the expiry date, ) for group life schemes, the unexpired duration of the period for which the premium rates are guaranteed, ) for group pension schemes, (ii) by deferred annuities under controlled funding, a period of 10 years, (iii) by deposit administration, a period of 10 years, (iv) by managed fund, a period of 10 years, ) for permanent health insurance, (i) for individual policies, the period to the expiry date; ) for capital redemption, the period to the fixed maturity date, ) for income and growth bonds, the period to the expected date of surrender. (5) In relation to paragraph (4), subparagraph ( ), ( ), ( ), ( ), ( ) and ( (6) Applications based on alternative definitions of the period to run shall be considered provided it can be shown that the definitions used in conunction with the allowance for premature termination may be expected to result in a conservation estimate of the average period to run. 55 Future profits: The multiplying factor. 55. (1) The calculation of the multiplying factor referred to in Article 17 (2) ( (2) The multiplying factor need not, however, be calculated where it is shown to the satisfaction of the Minister that such factor would in any event be in excess of that necessary to generate an adequate implicit item to supplement the explicit elements referred to in Article 17 (2) ( ) to ( ) of the Regulations of 1984 for the purpose of meeting the requirements of Article 18 of those Regulations. 56 Zillmerising. 56. (1) for the purposes of Article 17 (2) ( ) (ii) of the Regulations of 1984 the "relevant capital sum" of life assurance activities shall mean— ) for whole life assurances, the sum assured, ) for policies where a sum is payable on maturity (including policies where a sum is also payable on earlier death), the sum payable on maturity, ) for deferred annuities, the capitalised value of the annuity at the vesting date (or the cash option if it is greater), ) to ( ) the lesser of— (i) the amount for the time being payable on death, and (ii) the aggregate of the value for the time being of the units allocated to the contract (or, where entitlement is not denoted by means of units, the value for the time being of any other measure of entitlement under the contract equivalent to units) and the total amount of the premiums remaining to be paid during such of the term of the contract as is appropriate for zillmerising or, if such premiums are payable beyond the age of seventy-five, until that age, excluding in all cases any vested reversionary bonuses and any capital sums for temporary assurances. (3) Reserves for vested reversionary bonuses shall not be regarded as mathematical reserves for the purpose of this Article. 57 Hidden reserves 57. The implicit item relating to hidden reserves referred hidden reserves to in Article 17 (2) ( ) (iii) of the Regulations of 1984 may be given its full value. PART VII. REINSURANCE, MATCHING, LOCALISATION, DOCUMENTS OF TITLE, REGISTER. 58 Interpretation: Part VII. 58. In this Part— "assets" means— 59 Reinsurance. 59. (1) Reserves may, subject to paragraph (2), be established and maintained after the deduction of reinsurance cessions, provided such reinsurance arrangements are acceptable to the Minister. 60 Matching. 60. (1) Where that part of the liabilities of an undertaking expressed as being payable in any particular currency exceeds 5 per cent of the undertaking's total liabilities the undertaking shall hold sufficient assets expresssed in or capable of being realised without exchange risk into that currency to cover at least 80 per cent of the undertaking's liabilities in that currency. (2) For the purposes of paragraph (1), an asset is capable of being realised without exchange risk into a currency if it is reasonably capable of being realised into that currency without risk that changes in exchange rates would reduce the cover of liabilities in that currency. (3) Assets held pursuant to paragraph (1) shall be localised in the State or in the country of the currency in which the liabilities are expressed. 61 Localisation of assets. 61. (1) Notwithstanding the provisions of Article 60, ) an Irish head office undertaking and a community branch undertaking shall establish and maintain assets in the State equal to not less than 80 per cent of its liabilities; ) an Irish deposit undertaking, a Community deposit undertaking and an External branch undertaking shall establish and maintain assets in the State equal to not less than 100 per cent of its liabilities. (2) For the purposes of applying paragraph (1) to tangible assets, assets consisting of a claim against a debtor or a listed or unlisted investment, the following assets shall be regarded as being localised in the State— ) a tangible asset, where it is situated in the State; ) an asset consisting of a claim against a debtor— (i) in any case where the debtor is an incorporated company, where the head office of that company is situated in the State; (ii) in any case where the debtor is an unincorporated body of persons, where the body of persons is resident or ordinarily resident in the State; (iii) in any case where the debtor is an individual, where the individual is resident or ordinarily resident in the State; ) an asset consisting of a listed investment, where it is listed or dealt in on the Stock Exchange-Irish; ) an asset consisting of an unlisted investment issued by an incorporated company, where the head office of that company is situated in the State. (3) An asset consisting of an approved security issued and guaranteed by a Government outside the State shall not be regarded as localised in the State. (4) Notwithstanding the provisions of paragraph (1), an External branch undertaking and an Irish deposit undertaking shall also maintain assets in the State up to the amount of the guarantee fund required by Article 31 of the Regulations of 1984 and any excess either in the State or in another member State. 62 Documents of title. 62. 63 Register. 63. (1) The register referred to in Article 23 (3) of the Regulations of 1984 shall be maintained at the principal office of the undertaking in the State and shall contain up-to-date details of the assets representing the reserves in respect of life assurance business carried on in the State. (2) The register shall be open for inspection by an officer or officers of the Minister during normal business hours. SCHEDULE 1. Summary of Accounts to be Completed Annually. Returns required in respect of Irish head undertaking Returns required in respect of— Global business Irish business Community business Community branch undertaking External branch undertaking Irish deposit undertaking Community deposit undertaking Irish business Irish and Global business Irish Global and Community business Irish business 1. Revenue account 2. Analysis of premiums and expenses 3. Analysis of claims 4. Summary of changes in business—O.B. 5. Summary of changes in business—I.B. 6. Analysis of new business—O.B. 7. Analysis of new business—I.B. 8. Expected income from designated non-linked assets 9. Analysis of designated non-linked fixed interest securities 10. Analysis of holdings in recognised unit trusts directly matching liabilities in respect of property linked benefits 11. Analysis of assets which are matching liabilities in respect of property linked benefits other than holding in recognised units trusts or internal linked funds 12. Balance sheet for internal linked funds 13. Analysis of units in internal linked funds 14. Revenue account for internal linked funds 15. Asset analysis 16. Life assurance business liabilities and margins 17. Liabilities which are not life assurance business liabilities 18. Statement of other income and expenditure 19. Statement of net assets 20. Statement of solvency 21. Employment statistics 23. Auditors' certificate 23. Directors' report 24. Appointed Actuary's certificate *Denotes the forms to be completed by each undertaking (as appropriate). SCHEDULE 2. Forms of Account and Additional Information. (Forms 1 to 21). Completion of Forms 1. All the Forms set out in the part of the return to which this Schedule relates (Forms 1 to 21) shall be laid out as shown in this Schedule and shall be prepared in accordance with, and include every account, note and statement required by, the instructions for completion appended to those Forms. 2. (1) Except as provided in subparagraph (2), the following shall be expressed in Irish pounds as if conversion had taken place at the closing middle rate on the last day for which the appropriate rate is available in the financial year to which the figures relate— ) the value of any asset or liability expressed in a currency other than Irish pounds; ) amounts of premiums and other income receivable in a currency other than Irish pounds; ) amounts of claims and other expenditure payable in a currency other than Irish pounds. (2) Notwithstanding the provisions of subparagraph (1), amounts of income and expenditure in currencies other than Irish pounds may be expressed in Irish pounds using other bases of conversion provided that a note is included in the returns stating the bases employed. Presentation of Amounts 3. (1) Negative amounts shall be shown between round brackets. (2) Where any amount which is shown as brought forward from a previous year differs from the corresponding amount shown as carried forward from that year and the difference is not due solely to the fact that a different rate has been used to express other currencies in Irish pounds, a note of explanation shall be included in the return. (3) Amounts due to or from the undertaking shall be shown as gross amounts. (4) Amounts shall be shown to the nearer IR£1,000. Management Services 4. Where arrangements have been made for the provision of management services to an undertaking by another company (whether an undertaking or not)— ) the undertaking shall annex to Form 1 relating to its financial year during any part of which those arrangements are in force, and ) the other company (being an undertaking) shall annex to Form 1 relating to its financial year during any part of which those arrangements are in force a statement that the arrangements have been so in force in the financial year and naming the parties to them. Contingent Liabilities 5. (1) Contingent liabilities are normally to be included under the appropriate headings in Form 16 in respect of life assurance business and Form 17 in respect of liabilities which are not life assurance business liabilities. (2) The matters referred to in the following subparagraphs are to be stated by way of a note to Forms 16 and 17— ) particulars of any charge on the assets of the undertaking to secure the liabilities of any other person (other than liabilities arising under a contract of insurance) including, where practicable, the amount secured; ) whether any provision has been made for any liability to tax on capital gains which might arise if the undertaking disposed of its assets and, if so, the amount of the provision; ) the general nature of any other contingent liabilities not included in the manner specified in subparagraph (1) (other than a liability arising under a contract of insurance) and, where practicable, the amounts or estimated amounts of those liabilities. Form 1 Life Assurance Business: REVENUE ACCOUNT Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Fund/Part of Fund/Summary OB/IB Items to be shown net of reinsurance ceded The financial year 1 Previous financial year 2 Premiums receivable (less rebates and refunds) Investment income receivable before deduction of tax Increase (decrease) in the value of non-linked assets brought into account Increase (decrease) in the value of linked assets Other income (particulars to be specified) Total income (1 to 5) Claims payable Expenses payable Interest payable before deduction of tax 10 Other expenditure (particulars to be specified) 11 Transfer to (from) statement of other income and expenditure 12 Total expenditure (7 to 12) 13 Increase (decrease) in fund in financial year (6-13) 14 Fund brought forward 15 Fund carried forward (14 + 15) 16 Instructions for completion of Form 1 1. The entry at 1.1.1 shall be equal to 2.9.3, the entry at 1.7.1 shall be equal to 3.24.3 and the entry at 1.8.1 shall be equal 2.16.3. 2. Where an undertaking decides to allocate to the life assurance business the whole or any part of investment income and/or net capital gains arising from assets not attributable to its life assurance business, the amounts in question shall be shown as a transfer in line 12. 4. Where an undertaking maintains more than one life assurance fund. a statement shall be annexed to Form 1 giving the principles an methods applied in apportioning the investment income, increase or decrease in the value of assets brought into account. expenses and taxation between the different funds. Life Assurance Business ANALYSIS OF PREMIUMS AND EXPENSES Name of Undertaking: Global business/Irish business /Community business/Other Financial year ended Units IR£000 Fund/Part of Fund/Summary Claims payable in the financial year Recoverable from reinsurers Net ofreinsurance (1)-(2) (1) (2) (3) on death on maturity on surrender or partial surrender total life assurance claims (1 to 3) on death by way of lump sums on maturity by way of periodical payments on surrender or partial surrender total general annuity claims (5 to 8) Pension business on death 10 by way of sums on maturity 11 by way of periodical payments 12 on surrender or partial surrender 13 total pension business claims (10 to 13) 14 by way of lump sums 15 by way of periodical payments 16 total permanent health claims (15 + 16) 17 by way of lump sums 18 by way of periodical payments 19 total capital redemption claims (18 + 19) 20 Other claims (to be described) 21 22 total (21 + 22) 23 Total claims (4+9+14+17+20+23) 24 Total claims at line 24 attributable to Irish Business 25 Non-Irish Business 26 Instuction for completion of Form 3 2. Form 3 shall be completed separately in respect of each fund in respect of which a separate revenue account is to be prepared in Form 1. Form 4 Life Assurance Business: SUMMARY OF CHANGES IN BUSINESS—ORDINARY BRANCH Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Life Assurance General Annuity Pension Business Permanent Health Capital Redemption Annual premiums Single premiums Annual premiums Single premiums Annual premiums Single premiums Annual premiums Annual premiums 10 11 12 13 14 15 16 In force at beginning of year New Business Net transfers currency adjustments and other alterations "on" Total (2 + 3) Conversions to paid-up policies for reduced benefits Net transfers currency adjustments expiries and other alteration "off" 10 Total (5 to 10) 11 In force at end of year (1+4-11) 12 Instructions for completion of Form 4 1. In the case of lines 3 and 10, transfers to/from other life assurance business and any amounts included in respect of currency adjustments shall be shown separately. Form 5 Life Assurance Business: SUMMARY OF CHANGES IN BUSINESS—INDUSTRIAL BRANCH Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 In force at beginning of year No. of Policies Annual Premiums No. of Policies Taken out during year—Weekly Business —Monthly Business Converted to paid-up policies during year Net transfers, currency adjustments and other alterations "on" TOTAL "on" Discontinued during year by virtue of (a) Deaths (b) Maturities (c) Surrenders for cash (d) Terminations by return of premiums (e) Conversion to paid-up policies (f) Forfeitures without grant of paid –up policy or cash surrender Net transfers, currency adjustments, expiries and other alterations "off" TOTAL "off" In force at end of year Instructions for completion of Form 5 1. Policies discontinued by return of premiums on death of assured shall be included in class (a) and not class (d). 2. Paid-up policies which are written off shall be included in class (a) in the case of whole life policies and class (b) in the case of endowments. 3. Transfers to/from other life assurance business and any amounts included in respect of currency adjustments shall be shown separately. Form 6 Life Assurance Business: ANALYSIS OF NEW BUSINESS—ORDINARY BRANCH Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Type of Insurance Sums assured, annuities per annum or other measure of benefits Annual Premiums Sums assured, annuities per annum or other measure of benefits Instructions for completion of Form 6 1. All amounts shall be shown gross of reinsurance ceded. 2. The information is to be analysed and sub-totalled within each type of business in the sequence specified below— (i) life assurance business (ii) general annuity business (iv) permanent health business (iii) pension business (v) capital redemption business. 3. The information is to be further analysed and sub-totalled within each basis of participation in profits in the sequence specified below— 4. Within each sub-division required under Instructions 2 and 3, the appropriate types of insurance from the following list shall be shown separately— (i) whole life assurance (viii) other annuity (to be specified) (ii) endowment assurance (ix) group pension (iii) pure endowment assurance (x) group life (iv) term assurance (xi) other group (to be specified) (v) other assurance (to be specified) (xii) permanent health assurance (vi) deferred annuity (xiii) capital redemption assurance (vii) annuity in payment (xiv) annuity certain. 6. All columns shall be totalled with the exception of columns 4 and 7. Life Assurance Business: Form 7 ANALYSIS OF NEW BUSINESS — INDUSTRIAL BRANCH Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Whole life (including joint life) Endowment assurance (including jointlife) (See note) Other tables Number of policies issued: Weekly business Monthly business Annual Premiums Weekly business Monthly business Sums assured Weekly business Monthly business Instruction for completion of Form 7 If any table other than those shown in columns 1 and 2 (e.g. a table providing for recurring payments) is of significant amount details shall be given in column 3 with an appropriate heading. In the case of a table including a recurring payment, the sum assured on death before the date of the first recurring payment shall be shown against "sums assured" above and the amount of the recurring payment shall be shown separately in brackets. Life Assurance Business EXPECTED INCOME FROM DESIGNATED NON-LINKED ASSETS Form 8 Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Type of asset Value of designated assets as shown on Form 15 Expected income from designated assets Yield % Fixed interest securities issued by, or guaranteed by, any Government or public authority issued by, or guaranteed by, any Government or public authority except those included at line 5 issued by, any Government or public authority or public where the capital value or interest is determined by an index of prices Debts fully secured on land due more than 12 months after the end of the financial year due within 12 months after the end of the financial year All other assets producing income 10 not producing income 11 12 Instructions for completion of Form 8 1. Where Form 15 if for the same fund or group of funds:— The entry at 8.1.1. shall be equal to 15.1.3 The entry at 8.7.1. shall be equal to 15.8.3 + 15.9.3 + 15.10.3 The entry at 8.2.1. shall be equal to 15.2.3 The entry at 8.8.1. shall be equal to 15.25.3 + part of 15.29.3 The entry at 8.3.1. shall be equal to 15.3.3 + 15.4.3 + 15.5.3 The entry at 8.9.1. shall be equal to 15.26.3 + part of 15.31.3 The entry at 8.12.1. shall be equal to 15.43.3 The total for 8.4.1 + 8.5.1 shall be equal to 15.6.3 The entry at 8.6.1. shall be equal to 15.7.3 2. The expected income is to be given as the amounts before deduction of tax which would be received in the next financial year on the assumption that the assets will be held throughout that year and that the factors which affect income will remain unchanged but account shall be taken of any changes in those factors known to have occurred by the valuation date (in particular, changes of the type mentioned at subparagraphs (a) to (d) of Article 31 (5). The figures shown in this Form shall be those determined prior to any adjustments necessitated by Article 31 (6) ). 3. Where a particular asset is required to be taken into account only to a specified extent by virtue of the application of Article 49. the expected income from that asset shall be included only to the same extent. 4. Where regard is had to expected income from an asset in respect of which the payment of interest is in default, that fact and the amount of interest involved shall be stated. 5. The entries at 8.2.3 and 8.3.3. shall be equal to 9.8.4 and 9.16.4 respectively. The yields to be inserted in column 3 for other categories of asset shall be the running yields. The entry at 8.12.3 shall be the weighted average of the yields in column 3, where the weight given to each asset is the value of that asset applicable for entry in column 1. Assets not producing income shall be included in the calculation. 6. Separate statements of the expected income from non-linked assets shall be given in respect of each fund or group of funds for which separate assets are appropriated. 7. If an undertaking carrying on both industrial assurance business and life assurance business does not separately identify the assets representing the industrial assurance business, this Form shall be prepared in respect of all the undertaking's life assurance business. Form 9 Life Assurance Business ANALYSIS OF DESIGNATED NON-LINKED FIXED INTEREST SECURITIES Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Redemption period in years Value of designated assets as shown on Form 15 Expected income from designated assets Amount payable on redemption Gross redemption yield % Issued or guaranteed by any government or public authority one year or less more than one year but not more than five years more than five years but not more than ten years more than ten years but not more than fifteen years more than fifteen years but not more than twenty years more than twenty years total (1 to 7) one year or less more than one year but not more than five years 10 more than five years but not more than ten years 11 more than ten years but not more than fifteen years 12 more than fifteen years but not more than twenty years 13 more than twenty years 14 15 total (9 to 15) 16 Instructions for completion of Form 9 1. The gross redemption yield for each asset shall be calculated in accordance with Article 31 (3) and (4) leaving out of account any adjustment considered necessary because of Article 31 (6). Where a number of assets with different gross redemption yields are held, the weighted average gross redemption yield shall be calculated using as weights the value of the assets applicable for entry in column 1. 2. Where securities may be redeemed over a period at the option of the guarantor or insurer, they shall be classified on the assumption that they will be redeemed at the latest possible date or, if it is assumed that they will be redeemed at an earlier date, a note shall be provided explaining what assumption has been made. 3. 9.8.1, 9.8.2, 9.16.1 and 9.16.2 shall be equal to the values at 8.2.1, 8.2.2, 8.3.1 and 8.3.2 respectively. 4. The entries at 9.8.4 and 9.16.4 shall be weighted average of the yields in column 4 for lines 1 to 7 and 9 to 15 respectively, where the weight given to each yield is the value shown in column 1. 5. Separate statements of the expected income from non-linked assets shall be given in respect of each fund or group of funds for which separate assets are appropriated. 6. If an undertaking carrying on both industrial assurance business and life assurance business does not separately identify the assets representing the industrial assurance business, this Form shall be prepared in respect ofall the undertaking's life assurance business. Form 10 Life Assurance Business: ANALYSIS OF HOLDINGS IN RECOGNISED UNIT TRUSTS DIRECTLY MATCHING LIABILITIES IN RESPECT OF PROPERTY LINKED BENEFITS. Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Name of unit trust Number of units held Valuation price per unit Value of units held Instruction for Completion of Form 10 The basis on which the assets have been valued shall be stated in a note to this Form. Form 11 Life Assurance Business:

ANALYSIS OF ASSETS WHICH ARE MATCHING LIABILITIES IN RESPECT OF PROPERTY LINKED BENEFITS OTHER THAN HOLDINGS IN RECOGNISED UNIT TRUSTS OR INTERNAL LINKED FUNDS. Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Name of contract Value of assets Type of asset Instruction for completion of Form 11 1. The information in Form 11 is to be subdivided and totalled according to the names of categories of linked contract under which the liabilities in respect of property linked benefits are matched by such assets. 2. The basis on which the assets have been valued shall be stated in a note to the Form. Form 12 Life Assurance Business: BALANCE SHEET FOR INTERNAL LINKED FUNDS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Names of Funds Type of asset Fixed interest securities Government or Public authority Variable interest securities Unit Trusts Mortgages on land Deposits and loans Income due or accrued 10 Other assets (particulars to be specified) 11 Total (1 to 11) 12 Total investment in other internal linked funds of the company 13 Total assets (12 + 13) 14 Amount set aside for tax on capital gains not yet realised 15 Secured loans 16 Unsecured loans 17 Other liabilities (particulars to be specified) 18 Total liabilities (15 to 18) 19 Net asset value(14 —19) 20 Instructions for completion of Form 12 1. The entries at line 20 shall be the same as those at line 15 on Form 14. 2. The entry at line 12 in the Total column shall be equal to line 37 on Form 15. 3. The basis on which the assets have been valued and the total amount of unrealised capital gain or loss relating to each internal linked fund shall be given in a separate statement. Form 13 Life Assurance Business: ANALYSIS OF UNITS IN INTERNAL LINKED FUNDS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Name of internal linked fund in which invested Name of unit link Valuation price per unit Total number of units in force Value of total units in force Value of units held by each internal linked fund in each unit link of other internal linked funds Value of units in force excluding those held by other internal linked funds (5-9) 3 IR£ 5 IR£000 10 Link 1 Link 1 Instructions for completion of Form 13 1. The entries in column 5 for the total values of all units in force in each internal linked fund shall equal the entries in line 20 on Form 12. 2. The totals of columns 6, 7 etc., shall equal the entries in line 13 on Form 12. 3. If the total number of units in force exceeds the number of the units allocated to policyholders, the number of surplus units shall be included in an additional column headed "Value of surplus units excluding those held by other internal linked funds". 4. The amount of any over and/or underfunding of each internal linked fund shall be stated in a note. Form 14 Life Assurance Business: REVENUE ACCOUNT FOR INTERNAL LINKED FUNDS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Names of funds Value of net creation of units Investment income attributable to the fund before deduction of tax Increase (decrease) in the value of investments in financial year Other income (particulars to be specified) Total income (1 to 4) Value of net cancellation of units Charges for management Charges in respect of tax on investment income Taxation on realised capital gains Increase (decrease) in amount set aside for tax on capital gains not yet realised 10 Other provisions/reserves/expenditure (particulars to be specified) 11 Total expenditure (6 to 11) 12 Increase (decrease) in fund in the financial year (5 — 12) 13 Internal linked fund brought forward 14 Internal linked fund carried forward 15 Instruction for completion of Form 14 Funds shall be entered in the same column positions on this form and on Form 12. Form 15 ASSET ANALYSIS Name of Undertaking: Global business/Irish business/Community business/Other Life assurance business assets/not life assurance business assets Financial year ended Units IR£000 Asset CategoryAssets at book value Assets valued in accordance with Valuation Regulations Designated assets in (2) representing the life assurance business amount Assets in (3) localised in accordance with Regulations Assets in (3) not localised in Ireland % of % of (1) (2) (3) (4) (5) Fixed interest securities Issued by, or guaranteed by, any government or public authority Other fixed interest securities except those in dependants which must be included in lines 11 to 14 and any to be included in lines 25 or 26 Unlisted debentures Other unlisted Variable interest securities except those included at lines 8 to 14 Issued by, and guaranteed by, any government or public authority Other variable interest investments Holdings in recognised unit trusts 10 Investment in dependants Insurance companies 11 Debts other than amounts which must be included in lines 17 or 21 to 24 12 Non-insurance companies 13 Debts, other than amounts which must be included in lines 17 or 21 to 24 14 Total (1 to 14) 15 Form 15 (Sheet 2) ASSET ANALYSIS Name of Undertaking: Global business/Irish business/Community business/Other Life assurance business assets/not life assurance business assets Financial year ended Units IR£000 Asset Category Assets at book value Assets valued in accordance with Valuation Regulations Designated assets in (2) representing the life assurance business amount Assets in (3) localised in accordance with Regulations Assets in (3) not localised in Ireland (1) (2) (3) % of (4) % of (5) 16 Loans secured by policies of insurance issued by the undertaking 17 Tax recoveries due from taxation authorities 18 Deposits and current accounts with approved financial institutions Current accounts and amounts on deposit for a fixed term of, or on deposit and withdrawable after giving notice of, 12 months or less after the end of the financial year, and certificates of deposit maturingduring that period 19 Other (to be described) 20 Insurance debts including those due from dependants and individuals 21 Amounts due from ceding insurers and intermediaries under reinsurance treaties accepted 22 23 24 Debts fully secured on land except listed debentures (which must be included in line 3), debts due from dependants (which must be included in lines 12 or 14) and debts due from individuals (which must be included in lines 29 or 31) due more than 12 months after the end of the financial year 25 due in 12 months or less after the end of the financial year or which would become due if the undertaking excercised any rights to require repayment within that period 26 Total (16 to 26) 27 Form 15 (Sheet 3) ASSET ANALYSIS Name of Undertaking: Global business/Irish business/Community business/Other Life assurance business assets/not life assurance business assets Financial year ended Units IR£000 Asset Category Assets at book value Assets valued in accordance with Valuation Regulations Designated assets in (2) representing the life assurance business amount Assets in (3) localised in accordance with Regulations Assets in (3) not localised in Ireland (1) (2) (3) % of L.A.B.A. (4) % of liabilities (5) Debts except those which must be included in other lines due more than 12 months after the end of the financial year due from companies and unincorporated bodies of persons 28 due from individuals 29 due in 12 months or less after the end of the financial year, or which would become due if the undertaking exercised any right to require repayment within that period due from companies and unincorporated bodies of persons 30 due from individuals 31 32 33 Computer equipment 34 Other office machinery, furniture, motor vehicles and other equipment 35 Life interests, reversionary interests and similar interests in property 36 Linked assets linked assets in internal linked funds (as shown in line 12 on Form 12) 37 other linked assets 38 Other assets (to be described) 39 Total of Sheet 1 (15.15) 40 Total of Sheet 2 (15.27) 41 Total of Sheet 3 (28 to 39) 42 Total Assets (40 + 41 + 42) 43 44 Instructions for completion of Form 15 1. Form 15 shall be completed for the total assets of the undertaking and shall be completed (as appropriate)— (a) by every Irish head office undertaking, External branch undertaking and Irish deposit undertaking in respect of— (ii) the assets appropriated by it in respect of each separate life assurance business fund or group of funds for which separate assets have been appropriated; and (iii) the total assets of the undertaking which are not life assurance business assets; (b) by every Community branch undertaking and every Community deposit undertaking in respect of life assurance business carried on by it through an agency or branch in the State in respect of— (ii) the assets of the undertaking relating to that business and appropriated by it in respect of each life assurance fund or group of funds for which separate assets have been appropriated, and (iii) the total assets of the undertaking, which are not life assurance business assets, relating to that business. Where additional assets are maintained by the undertaking in the State but are not appropriate for inclusion in Form 15, then full details of those assets shall be given in a separate schedule to this Form. (c) by every External branch undertaking in respect of life assurance business carried on by it through an agency or branch in the State in respect of those assets which are— (i) deposited with the Accountant of the Courts of Justice: (ii) maintained in the State, and (iii) maintained in the State and other Member States; and (d) by every Irish deposit undertaking in respect of life assurance business carried on by it through agencies or branches in the Member States concerned in respect of those assets which are— (i) deposited with the Accountant of the Courts of Justice; (ii) maintained in the State and such other Member States where business is carried on, and (iii) maintained in the State and the other Member States. 2. The information required at (i), (ii) and (iii) of subparagraph (c) and (d) may be accommodated on one form where this is more appropriate. 3. Linked assets shall be included in lines 37 and 38 wherever appropriate and not in lines 1 to 36 or line 39. 4. In line 36 "life interests, reversionary interests and similar interests in property" means those interests of the kind described in Article 47 of Part V. 5. Columns (3), (4) and (5) are not required to be completed for the purpose specified in paragraph 1 (a) (iii). Form 16 LIABILITIES AND MARGINS Life Assurance Business: Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 As at the end of the financial year 1. As at the end of the previous year 2. Ordinary Life Assurance Business (all funds) Mathematical reserves as shown in Schedule 4, after distribution of surplus Balance of life assurance business funds Ordinary branch business funds (1 + 2) Valuation deficiencies Industrial Assurance Business Mathematical reserves as shown in Schedule 4, after distribution of surplus Balance of life assurance business funds Industrial branch business funds (5 + 6) Valuation deficiencies Other Insurance Liabilities Claims admitted but not paid 10 Amounts due to ceding insurers and intermediaries under reinsurance treaties accepted except amounts which must be included in line 9 11 12 Other Liabilities Loans secured 13 Loans unsecured 14 15 Other creditors (to be described) 16 Excess of the value of designated assets representing the life assurance business funds over the amount of those funds 17 Total (3 + 4 + 7 to 17) 18 19 Amount included in line 18 attributable to liabilities in respect of property linked benefits 20 Instructions for completion of Form 16 1. The entries at 16.1 and 16.5 shall equal the sum of lines 9, 19, 20, and 21 of the appropriate Form 28. 2. The amount of any cash bonuses allocated but not yet paid to policyholders, as shown in 28.18 (which together with 28.25 constitutes the balance of the life assurance business funds) shall be stated in a note. 3. The value of designated assets representing the life assurance business funds is determined by deducting from the total value of the designated assets an amount equal to the liabilities itemised in lines 9 to 16. The amount of any additional mathematical reserves included in line 17 which have been taken into account in the actuary's certificate because the amount of the mathematical reserves determined in Schedule 4 was not calculated in all respects in relation to assets valued in accordance with Part V, shall be stated in a note. Form 17 LIABILITIES WHICH ARE NOT LIFE ASSURANCE BUSINESS LIABILITIES Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 At the end of the financial Year At the end of the previous financial Year Other than Life Assurance business Loans secured Loans unsecured Subordinated loan stock Recommended dividend Other creditors (to be described) Total (1 to 7) Form 18 STATEMENT OF OTHER INCOME AND EXPENDITURE Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Year of Account Previous Year Transfer from (to) Life Assurance Business Revenue Account Investment income receivable before deduction of tax See note below Other Income See note below Total (1 to 3) Management Expenses See note below Interest payable before deduction of tax Taxation other than that applicable to life assurance business Dividends paid and/or recommended Other expenditure See note below Total (5 to 9) 10 Excess of income over expenditure (4-10) 11 Opening balance 12 Closing balance (11 + 12) 13 Instruction for completion of Form 18 The amounts at lines 2, 3, 5 and 9 exclude any amounts included elsewhere in the returns. Form 19 STATEMENT OF NET ASSETS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 As at the end of the financial year 1. As at the end of the previous year 2. Life Assurance business — Designated assets plus linked assets 15.43.3 + 15.37.2 + 15.38.2 Life Assurance business — liabilities and margins 16.18.1 Excess of the value of designated assets representing the life assurance business funds over those funds Assets which are not life assurance business assets 15.43.2 Liabilities which are not life assurance business liabilities 17.8.1 Net available assets (4-5) Unpaid capital — as per line 12 Net assets (6 + 7) 10 11 12 Assets representing the balance of net assets 13 Total (10 to 13) and equal to line 8 14 Form 20 STATEMENT OF SOLVENCY Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 As at the end of the financial year As at the end of the previous year LIFE ASSURANCE BUSINESS—AVAILABLE ASSETS Life assurance business designated assets 19.1.1 Excess of the value of designated assets representing the life assurance business funds over those funds 19.3.1 Assets which are not life assurance business assets allocated towards life assurance business required minimum solvency margin 19.4.1 See instruction 1 below Total mathematical reserves (after distribution of surplus) See instruction 2 below Other insurance and non-insurance liabilities See instruction 3 below Available assets for Life Assurance business required minimum solvency margin (1 + 2 + 3 – 4 - 5) IMPLICIT ITEMS ADMITTED UNDER ARTICLE 17 (2) (E) OF THE EUROPEAN COMMUNITIES (LIFE ASSURANCE) REGULATIONS. 1984 (S.I. 57 OF 1984) Future profits Hidden reserves Total of available assets and implicit items (6 + 7 + 8 + 9) 10 REQUIRED MINIMUM SOLVENCY MARGIN Required minimum solvency margin for life assurance business 11 30.13 Explicit required minimum solvency margin ( x 11, or minimum guarantee fund if greater) 12 Excess (deficiency) of available assets over explicit required minimum solvency margin (6-12) 13 Excess (deficiency) of available assets and implicit items over the required minimum solvency margin (10-11) 14 CONTINGENT LIABILITIES Quantifiable contingent liabilities in respect of other than life assurance business as shown in a supplementary note to Form 17 15 Quantifiable contingent liabilities in respect of life assurance business as shown in a supplementary note to Form 16 16 Instructions for completion of Form 20 1. The entry at line 3 shall be equal to 19.4.1 - 19.5.1 + 19.7.1. 2. The entry at line 4 shall be equal to the sum of lines 1 and 5 in Form 16 and the amount (if any) stated in a note to that Form in accordance with Instruction 3 to that Form. 3. The entry at line 5 shall be equal to the sum of lines 9 to 16 in Form 16 and the amount of any cash bonuses stated in a note to that Form in accordance with Instruction 2 to that Form. 4. The entries at lines 15 and 16 shall not include provision for any liability to tax on capital gains referred to in paragraph 5 (2) (b) of Schedule 2. Form 21 EMPLOYMENT STATISTICS Name of Undertaking: Financial year ended Irish Head Office Undertaking Undertaking with Head Office outside Ireland In Ireland Outside Ireland In Ireland Full-time Staff Employed Total Payroll Part-time Staff Employed Total Payroll Form 22 AUDITORS' REPORT REQUIRED BY ARTICLE 21 OF THE EUROPEAN COMMUNITIES (LIFE ASSURANCE ACCOUNTS, STATEMENTS AND VALUATIONS) REGULATIONS, 1986. Name of Undertaking: Global business Financial year ended Form 23 CERTIFICATE BY DIRECTORS ETC., REQUIRED BY ARTICLE 22 (a) OF THE EUROPEAN COMMUNITIES (LIFE ASSURANCE ACCOUNTS, STATEMENTS AND VALUATIONS) REGULATIONS, 1986. Name of Undertaking: Global business Financial year ended Form 24 CERTIFICATE BY APPOINTED ACTUARY REQUIRED BY ARTICLE 22 (b) OF THE EUROPEAN COMMUNITIES (LIFE ASSURANCE ACCOUNTS, STATEMENTS AND VALUATIONS) REGULATIONS, 1986. Name of Undertaking: Global business Financial year ended SCHEDULE 3 PART 1 Auditors' Report ) in the auditors' opinion, whether the parts of the return required to be audited (that is Forms 1 to 20) have been properly prepared in accordance with the provisions of the Regulations of 1984 and these Regulations; ) in the auditors' opinion and according to the information and explanations they have received, — (i) whether the certificate required to be signed by the directors in accordance with Article 22 (a) has been properly prepared in accordance with the Regulations of 1984 and these Regulations; (ii) whether it was reasonable for the persons giving the certificate to have made the statements therein; ) that in giving their opinion the auditors have relied, — (i) on the certificate of the actuary given in accordance with Part 3 of this Schedule with respect to the mathematical reserves and required minimum solvency margin, required Community minimum solvency margin or required Irish minimum solvency margin, as the case may be, of the undertaking; (ii) on the identity and value of any implicit items as they have been admitted in accordance with Part VI of these regulations. SCHEDULE 3 PART 2 Certificate by directors etc. 2. Subject to paragraph 6, the certificate required by Article 22 ( ) shall state, in relation to the part of the return comprising Forms 1 to 20— ) that for the purposes of preparing the return — (i) proper accounts and records have been maintained and adequate information has been obtained by the undertaking, and (ii) an appropriate system of control has been established and maintained by the undertaking over its transactions and records; ) that the value shown for each category of asset has been determined in conformity with Article 6 and includes the value of only such assets or such parts thereof as are permitted to be taken into account; ) that the amount shown for each category of liability (including contingent and prospective liabilities) has been determined in conformity with Article 6; and ) that the assets held throughout the financial year enabled the undertaking to comply with Articles 60 and 61. 3. Subject to paragraph 6 the certificate required by Article 22 ( ) shall state, ) in the case of an Irish head office undertaking or (in respect of its global business) an Irish deposit undertaking or External branch undertaking, that — (i) immediately following the end of the financial year the amount of the undertaking's required minimum solvency margin was as shown in Form 20; (ii) at the end of the financial year the amount of the undertaking's available assets and quantifiable contingent liabilities (other than those included in Forms 16 or 17 in accordance with paragraph 5 (1) of Schedule 2) and the identity and value of items admitted as implicit items in accordance with Article 17 (2) ( ) of the Regulations of 1984 and these Regulations, were as shown in Form 20; ) in respect of the life assurance business carried on by an External branch undertaking through an agency or branch in the State, that— (i) immediately following the end of the financial year the amount of the undertaking's required minimum solvency margin was as shown in Form 20; (ii) at the end of the financial year the amount of the undertaking's available assets and quantifiable contingent liabilities (other than those included in Forms 16 or 17 in accordance with paragraph 5 (1) of Schedule 2 to these Regulations) and the identity and the value of items admitted as implicit items in accordance with Article 30 (1) of the Regulations of 1984 and these Regulations were as shown in Form 20; (iii) that the undertaking has kept assets representing the required minimum solvency margin of an amount at least equal to the amount of the guarantee fund or minimum guarantee fund, if greater, required by Article 31 of the Regulations of 1984 within the State and has kept assets representing the remainder of that required minimum solvency margin in the State or in an other member State; (iv) that the deposit made in accordance with Article 28 (1) ( ) of the Regulations of 1984 has been maintained at a level equal to at least the minimum specified in that Article; ) in respect of the life assurance business carried on by an Irish deposit undertaking through agencies or branches in the member States concerned, that — (i) immediately following the end of the financial year the amount of the undertaking's required Community minimum solvency margin was as shown in Form 20; (ii) at the end of the financial year the amount of the undertaking's available assets and quantifiable contingent liabilities (other than those included in Forms 16 or 17 in accordance with paragraph 5 (1) of Schedule 2) and the identity and value of items admitted as implicit items in accordance with Article 30 of the Regulations of 1984 and these Regulations were as shown in Form 20; (iii) that the undertaking has kept assets representing the required Community minimum solvency margin of an amount at least equal to the appropriate guarantee fund or minimum guarantee fund, if greater, in the member States concerned and has kept assets representing the remainder of that required minimum solvency margin within the member States concerned and the other member States; (iv) that the deposit made in accordance with Article 28 (1) ( ) of the Regulations of 1984 has been maintained at a level equal to at least the minimum specified in that Article; ) In the case of a branch or agency of a Community undertaking and of a Community deposit undertaking, that — (i) the value of the assets of the life assurance business carried on by the undertaking in the State was maintained at not less than the amount of the liabilities of that business; (ii) the designated assets proffered at the end of the financial year as representing liabilities (including contingent and prospective liabilities) to Irish policyholders were — ) held for that purpose and free of all other foreseeable liabilities of the undertaking, ) of an appropriate amount, nature, term and currency for that purpose. 4. The directors' certificate required by Article 22 ( ) of Part III shall also state, subject to paragraph 6, — ) that the register required by Article 23 (3) of the Regulations of 1984 has been maintained throughout the year and, in respect of the assets listed in the register, the value of those assets on the closing date for which the accounts and balance sheets of the head office of the undertaking are furnished to the competent supervisory authority, such values being those in such accounts and balance sheets; ) that any amount payable from or receivable by the life assurance business fund or funds in respect of services rendered by or to any other business carried on by the undertaking or by or to a connected company has been determined and, where appropriate, apportioned on terms which are believed to be no less than fair to that fund or those funds, and any exchange of assets representing such funds for other assets of the undertaking has been made at fair market value; ) that all guarantees given by the undertaking of the performance by a related company of a contract binding on the related company which would fall to be met by any life assurance business fund have been disclosed in the return, and that the fund or funds on which each such guarantee would fall have been identified therein; ) in the case of an Irish head office undertaking, Irish deposit undertaking or External branch undertaking, that — (i) the provisions of Article 23 (4) ( ) of the Regulations of 1984 have been complied with, (ii) the returns in respect of life assurance business are not distorted by agreements between the undertakings concerned or by any arrangements which could affect the apportionment of expenses and income. 5. The directors' certificate required by Article 22 ( ) shall state, subject to paragraph 6, whether proper accounts and records have been maintained in the State in respect of business supervised in the State. 6. (1) Where, in the opinion of those signing the certificate, the circumstances are such that any of the statements required by paragraphs 2 to 5 (other than subparagraphs ( ), ( ) (i) and (ii) and ( ) (i) and (ii) of paragraph 3) cannot truthfully be made, the relevant statements shall be omitted; (2) Where by virtue of subparagraph (1), any statements have been omitted from the certificate, this fact shall be stated in a note. SCHEDULE 3 PART 3 Certificate by appointed actuary 7. The certificate required by Article 22 ( ) to be signed by the appointed actuary— ) shall state, if such be the case,— (i) that in his opinion proper records have been kept by the undertaking adequate for the purposes of the valuation of the liabilities of its life assurance business; (iii) that for the purposes of subparagraph (ii), the liabilities have been assessed in accordance with Part IV in the context of assets valued in accordance with Part V, as shown in Form 15; ) shall state the amount of the required minimum solvency margin, required Community minimum solvency margin or required Irish minimum solvency margin, as the case may be, applicable to the undertaking's life assurance business immediately following the end of the financial year (including any amounts resulting from any increase in liabilities arising from a distribution of surplus as a result of the investigation into the financial condition of the life assurance business). 8. The appointed actuary shall, if he considers it necessary, add to the certificate such qualifications, amplifications or explanations as may be appropriate. SCHEDULE 4 ABSTRACT OF VALUATION REPORT PREPARED BY THE APPOINTED ACTUARY (FORMS 25 TO 30) The abstract shall state that the valuation has been made in conformity with Article 26. The following information shall be given, the answers being numbered to accord with the numbers of corresponding paragraphs of this Schedule and any monetary amounts being shown in Irish pounds (converted from other currencies, where necessary, at the latest closing middle rate available on the date to which the investigation relates)— 1. The date to which the investigation relates. 2. The date to which the latest previous investigation related. 3. For each category of non-linked contract, other than those fully described by the entry in column 1 of Form 25, a full description of the benefits including any premium rate guarantees and options. 4. (1) For each category of linked contract — ) a full description of the benefits including any guarantees and options; ) the percentage of premiums invested (deemed or actual) for specimen ages and terms; ) a list of the internal linked funds to which benefits under the contract may be linked, with details of the type of unit allocated where the fund is divided into more than one type; ) a list of the recognised unit trusts to which benefits under the contract may be linked. (2) For each internal linked fund — ) the general nature of the investments of the fund and the charges that are made to the fund in respect of investment expenses; ) for each type of unit based on that fund, the initial and periodic charges made and the nature of any other pricing adjustments. (3) For each recognised unit trust, the rate of discount, commission or other allowance made to the undertaking on the purchase or sale of units. 5. (1) The general principles and methods adopted in the valuation including specific reference to the following — ) the basis of the provision made for any mismatching between the nature (including currency) and term of the assets held and the liabilities valued; ) where the net premium method has been used, whether and to what extent it has been modified and for what purposes the modification has been made and whether any modifications on account of zillmerising conform to Article 30; ) whether any negative reserves arose and the steps taken to ensure that no contract of insurance was treated as an asset; ) whether any specific reserve has been made for future bonus and, if so, at what rate or rates; ) the basis of the provision made for any prospective liability for tax on unrealised capital gains; ) the basis of the provision made for any guarantees and options (other than investment performance guarantees). (2) For the purposes of this paragraph — where, in determining the provisions referred to in sub-paragraphs ( ) and ( ), account has been taken of the fact that the fund has been brought into Form 28 at book value in accordance with Article 38 (5), that fact shall be stated. (2) If the tables used have not been published, full details of the rates of mortality or disability used. ) where appropriate, the proportion of the office premiums explicitly or implicitly reserved for expenses and profits for each type of insurance (to be shown in column 8 of Form 25); ) the method by which provision is made for expenses after premiums have ceased or where no future premiums are payable or where the method of valuation does not take credit for future premiums as an asset; ) where a prospective method of valuation has not been used, details of the tests of the adequacy of the method used; 8. For each category of linked contract — ) all assumptions made in calculating the valuation net liability in columns 11 and 12 of Form 26; 10. (1) For reinsurance ceded on a facultative basis, separate particulars of business ceded to insurers authorised to transact business in the territory of a member State, to insurers not so authorised and to specialist reinsurers showing, in each case, — ) the aggregate of premiums payable by the undertaking and the aggregate amount deposited at the date to which the valuation relates under any deposit back arrangements; ) the amount of any such premiums payable by the undertaking to a reinsurer with whom it is connected and the aggregate of such amounts deposited at that date under any deposit back arrangements with all such reinsurers. (2) Where the undertaking is the cedant, particulars of reinsurance treaties in force at the date to which the valuation relates, stating — ) whether the reinsurer is authorised to carry on insurance business in a member State; ) whether the undertaking and the reinsurer are connected; ) the nature and extent of cover given under the treaty; ) the premiums payable under the treaty during the period since the date to which the last valuation report related; ) the amount deposited at that date in respect of the treaty under any deposit back arrangements; ) the extent to which provision has been made for any liability of the undertaking to refund any amounts of reinsurance commission in the event of lapses or surrenders of the contract; ) whether the treaty is closed to new business. 11. Where any rights of any policyholders to participate in profits relate to profits from particular parts of a life assurance fund — ) a revenue account in the format of Form 1 for each such part except where such information is provided elsewhere: ) the principles and methods applied in apportioning the investment income, increase or decrease in the value of assets brought into account, expenses and taxation between each part, where these particulars are not provided elsewhere. 13. Particulars and source of the principles on which projected future bonus rates are made together with details of such rates. 14. Particulars of the bonus allocated to each category of contract, including the basis of calculation and the circumstances and the form of payment. (Wherever appropriate, rates of bonus are to be expressed as a fraction of the attribute of the contract to which they are related, e.g. as rates per £1,000 of the sum assured and existing bonuses.) 15. Where the rates of bonus allocated depend on the original term of the contract or on the period of years a contract has been in force or on the age of the life assured, specimen rates at 5-year intervals of original term or duration or at 10-year intervals of age, as the case may be. (Where the rates of bonus allocated depend on a formula or a series of formulae, then the formula or formulae should be listed instead of the specimen rates.) 16. Where any conditions attach to the allocation of bonus to any category of contract concerning the number of years premiums to be paid before a bonus vests or otherwise, particulars of such conditions in relation to each category of contract. 17. Particulars of the practice regarding bonus payments (in addition to those for which the undertaking has become contractually liable) to be made on claims arising in the period up to the next investigation together with the rates at which such bonus payments are to be determined. 18. Separate valuation summaries in the forms set out in Forms 25 and 26 and separate analyses of unit liabilities in the form set out in Form 27 in respect of each separate fund or part of a fund for which a surplus is determined under Article 5 for —. (i) direct business and reinsurance accepted; (ii) reinsurance ceded. 19. Separate statements of the results of the valuation in the form set out in Form 28 in respect of each separate fund or part of a fund for which a surplus is determined under Article 5. 20. Separate statements of the required minimum solvency margin for life assurance business in the form set out in Form 30. 21. ( ) Subject to subparagraph ( ), a separate statement of the required solvency margin for supplementary insurance in the form set out in Form 29; ) Form 29 need not be completed if the gross annual office premiums for supplementary insurance in force on the valuation date do not exceed 1 per cent of the gross annual office premiums in force on that date for all life assurance business, provided it can be stated that the entry in line 10 of Form 30 exceeds the amount that would be obtained if Form 29 were to be completed. In this circumstance, the method of estimating the entry in line 10 of Form 30, together with a statement of the gross annual office premiums in force at the valuation date in respect of supplementary insurance, shall be given. In any year when a statement of life assurance business is prepared it shall be sufficient: ) instead of giving the full information required by paragraphs 3 and 4, to refer to the previous abstract when full information in respect of the category of contract was last given, that is if full information in respect of every category of contract was given in that abstract, ) instead of giving the full information required by paragraph 5, to state whether changes have been made since the previous abstract when full information was last given, that is if full information of the general principles and methods adopted in the valuation was given in that abstract.] Form 25 Name of Undertaking: Global business/Irish business/Community Business/ Other Financial year ended Fund/Part of Fund Type of Insurance Valuation basis Amount of sums assured or annuities per annum, including vested reversionary bonuses Amount of annual premiums Proportion of office premiums reserved for expenses and profits Value of sums assured or annuities per annum, including vested reversionary bonuses Value of annual premiums Amount of mathematical reserves Rate of interest Mortality of disability table Office premiums Net premiums Office premiums Net premiums 10 11 12 Form 26 Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Fund/Part of Fund Name of Contract Valuation basis Amount of sums assured, annuities per annum, or other measure of benefit, including vested reversionary bonuses Amount of annual premiums Category of unit link Unit liability Non-unit liabilities Amount of mathematical reserves Rate of interest Mortality table Guaranteed on death Current on death Guaranteed on maturity Office premiums Net premiums Mortality and expenses Options and guarantees other than investment performance guarantees 10 11 12 13 14 Instructions for completion of Forms 25 and 26 1. Information shall be shown separately and totalled within each section in the sequence specified below. (i) Irish business (ii) Non-Irish business The totals net of reinsurance ceded of Irish business and non-Irish business are also to be shown together with a summary of global net total business. Separate totals for column 5 on Form 25 and columns 5, 6 and 7 on Form 26 shall be shown for sums assured, for annuities per annum and for other measures of benefit. 2. The information shall be analysed and subtotalled within each type of business in the following sequence: (i) life assurance business (ii) general annuity business (iii) pension business (iv) permanent health business (v) capital redemption business. 3. The information shall be further analysed and subtotalled within each basis of participation in profits in the following sequence: (i) with participation in profits (ii) without participation in profits. 4. Within each subdivision required under paragraphs 2 and 3 above the appropriate types of insurance from the following list shall be shown separately: (i) whole life assurance (ii) endowment assurance (iii) pure endowment assurance (iv) term assurance (v) other assurance (to be specified) (vi) miscellaneous assurance (vii) deferred annuity (viii) annuity in payment (ix) other annuity (to be specified) (x) miscellaneous annuity (xi) group pension (xii) group life (xiii) other group (to be specified) (xiv) permanent health insurance (xv) capital redemption assurance (xvi) annuity certain (xvii) supplementary insurance. 5. A further subdivision into each separate category of contract is required as follows: Form 25 — Each category of contract which is valued on a different valuation basis; Form 26 — Each category of contract which provides different guarantees or options, and each category of unit link. For the purpose of determining the category of the unit link, all recognised unit trusts may be considered to be one category and all internal linked funds may be considered to be one category. Reserves for tax on capital gains or for investment performance guarantees may be shown on separate lines in the mathematical reserves column, where they are calculated on an aggregate basis, or in additional columns of non-unit liabilities, where they are calculated on an individual basis. 6. Special reserves (including reserves calculated on an aggregate basis for tax on capital gains and investment performance guarantees) or adjustments shall be shown on separate lines in the mathematical reserves column and the particulars of such reserves of adjustments shall be specified. Provided that, in relation to any category of such combined contract, any types of insurance included in the combination which in the aggregate account for less than 10 per cent of the total mathematical reserves under that category of contract need not be separately distinguished. 14. Life annuities guaranteed for a term certain or which provide for a refund of the balance of the purchase money on early death may be included with other life annuities. 17. Where for group life and pension schemes the mathematical reserves at the valuation date are based on those in respect of the business in force at the last scheme revision date, any adjustment on account of changes after that date shall be shown separately. 18. In relation to each category of contract, where it is appropriate, it shall be stated whether the amount of the sum assured or deferred annuity shown in the valuation summary is the full sum assured or annuity which would come into payment on the maturity date or the amount accrued or actually purchased at the date to which the investigation relates and, where it is the amount accrued or actually purchased at the date, an estimate of the full prospective sum assured or annuity for that category shall be given. Form 27 ANALYSIS OF UNIT LIABILITIES Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Fund/Part of Fund Name of unit link Valuation price per unit Unit liability Instructions for completion of Form 27 1. The total of column 4 shall equal the total of column 11 on Form 26. 2. A separate line shall be used for each recognised unit trust and each different type of unit of each internal linked fund. Form 28 VALUATION RESULT AND DISTRIBUTION OF SURPLUS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Fund/Part of Fund Valuation result Fund carried forward as per revenue account Bonus payments made to policyholders in anticipation of a surplus Transfers out of Fund/Part of Fund Net transfer to (from) statement of other income and expenditure Net transfer to (from) other Funds/Parts of Funds Net transfers out of Fund/Part of Fund (3 + 4) Total (1 + 2 + 5) Total (7 + 8) Surplus including contingency and other reserves held towards the solvency margin (deficiency) (6-9) 10 Composition of surplus Balance of surplus brought forward unappropriated from last valuation 11 Transfers into Fund/Part of Fund Net transfer from (to) statement of other income and expenditure 12 Net transfer from (to) other Funds/Parts of Funds 13 Net transfer into Fund/Part of Fund (12 + 13) 14 Surplus arising since the last valuation 15 Total (11 + 14 + 15) (= 10) 16 Distribution of surplus Bonus payments made to policyholders in anticipation of a surplus 17 Allocated to policyholders by way of Cash bonuses 18 Reversionary bonuses 19 Other bonuses 20 Premium reductions 21 Total allocated to policyholders (17 to 21) 22 22 Net transfer out of Fund/Part of Fund (= 5) 23 Total distributed surplus (22 + 23) 24 Balance of surplus (including contingency and other reserves held towards the solvency margin) carried forward unappropriated 25 Total (24 + 25) (= 10) 26 Percentage of distributed surplus allocated to policyholders of Fund/Part of Fund 27 Corresponding percentage at previous valuation 28 Instructions for completion of Form 28 1. The entry at line 1 shall be equal to the entry at line 16 in the revenue account for the relevant fund/part of fund. 2. Where interim, mortuary or terminal bonuses are determined in advance of a valuation and are paid in anticipation of surplus arising at the valuation, the amounts of such bonus actually paid in the period up to the valuation date shall be entered in lines 2 and 17. To the extent that it is the practice to make specific provision for the cost of such bonuses payable on future claims out of surplus arising at a valuation, such amounts shall be treated as amounts allocated to policyholders at the valuation in question and included in line 20, and the actual amounts paid shall not appear at lines 2 and 17 at future valuations. An appropriate note shall be attached identifying the various items where necessary. 3. Where policies have been transferred from one fund/part of fund to another, the associated transfer of reserves shall not be included as a "transfer" in this Form. Where any other transfer has been made, only one positive figure shall be inserted in either line 5 or 14 (depending on the direction of the net transfer) leaving the other line blank. Corresponding entries shall be made in either line 3 or line 4 or line 12 or line 13, as appropriate. 4. Where the entry in line 4 or line 13 represents more than one transaction, each transfer shall be separately identified in the form or in a note. 5. In the case of an undertaking which makes allocations to eligible policyholders generally at intervals of more than one year, bonus payments made to policyholders in anticipation of a surplus, transfers to or from other income and expenditure or to or from other funds or parts of funds shall include the amounts of all such bonus payments and transfers made since the date of the last general allocation. In that case the word "valuation" in lines 11 and 15 shall be replaced by "general allocation", and line 11 shall show the balance of the surplus brought forward unappropriated from the date of the last general allocation and line 15 shall show the total amount of the surplus arising since that date. When the bonus payments or transfers relate to a period of more than one year that fact shall be staled in a note. 6. Line 27 is line 22 expressed as a percentage of line 24. Form 29 SUPPLEMENTARY INSURANCE CALCULATION OF REQUIRED SOLVENCY MARGIN Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 The financial year 1 The previous year 2 Gross premiums or contributions receivable Premiums or contributions cancelled and premium contribution taxes and levies (included in line 1) Subtotal A (1-2) Adjusted subtotal A if financial year is not a 12 month period to produce an annual figure Division of subtotal A (or adjusted subtotal A if appropriate) Up to and including Irish pound equivalent of 10M ECU x 18% Excess (if any) over 10M ECU x 16% Subtotal B (5 + 6) Claims paid Claims outstanding carried forward at end of financial year Claims outstanding brought forward at beginning of financial year 10 Subtotal C (8 + 9 - 10) 11 Amounts recoverable from reinsurers in respect of claims included in subtotal C 12 Subtotal D (11 — 12) 13 Required margin of solvency for Supplementary Insurance Subtotal B x 14 "Supplementary insurance" means the insurance specified in Article 1 (1) (c) of the Directive. Form 30 (Sheet 1) REQUIRED MINIMUM SOLVENCY MARGIN Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Classes I and II Class III business with relevant factor of Classes IV and VI Class VII business with relevant factor of Unallocated additional mathematical reserves with relevant factor of Total for all classes Relevant factor (Note 4) The financial year The previous year 1.

Mathematical reserves before deduction for reinsurance: (a) Reserves before distribution of surplus (b) Reserves for bonus allocated to policyholders (c) Reserves after distribution of surplus 2. Mathematical reserves after deduction for reinsurance: (a) Reserves before distribution of surplus (b) Reserves for bonus allocated to policyholders (c) Reserves after distribution of surplus 3. Ratio of 2 (c) to 1 (c) or 85% if greater Form 30 (Sheet 2) REQUIRED MINIMUM SOLVENCY MARGIN Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Classes I and II Class III business with relevant factor of Classes IV and VI Class VII business with relevant factor of Unallocated additional mathematical reserves with relevant factor of Total for all classes Relevant factor (Note 4) The financial year The previous year 4. Required solvency margin — first result = 1 (c) x 3 x relevant factor 5. Non negative capital at risk before reinsurance: (See Note 1) (a) Temporary assurances with required solvency margin of 0.1% (b) Temporary assurances with required solvency margin of 0.15% (d) Total for (a) + (b) + (c) Form 30 (Sheet 3) REQUIRED MINIMUM SOLVENCY MARGIN Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Units IR£000 Classes I and II Class III business with relevant factor of Classes IV and VI Class VII business with relevant factor of Unallocated additional mathematical reserves with relevant factor of Total for all classes Relevant factor (Note 4) The financial year The previous year 7. Ratio of 6 to 5 (d), or 50% if greater 8. Required solvency margin—second result (see Note 2) 9. Sum of first and second result = 4 + 8 10. Required solvency margin for Supplementary Insurance 11. Total required solvency margin = 9 + 10 12. Minimum guarantee fund 13. Required minimum solvency margin (greater of 11 and 12) 1. After distribution of surplus. 2. Line 8 equals line 7 x [5 (a) x 0.1% + 5 (b) x 0.15% 5 (c) x 0.3%] for Classes I and II, or line 7 x 5 (d) x 0.3% for Class III and Class VII. 3. Any additional mathematical reserves referred to in the note to Form 16 shall be included on this Form. 4. The appropriate factor specified in Article 18 of the Regulations of 1984. SCHEDULE 5 STATEMENT OF LIFE ASSURANCE BUSINESS BY THE APPOINTED ACTUARY (FORMS 31 TO 44) 1. The date at which the valuation is made shall be stated. 2. (1) A statement for each category of non-linked contract which is separately distinguished in Form 25 is to be given in such one of the forms set out in Forms 31 to 36 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 25. (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 — ) according to age, or ) according to the number of annual payments remaining to be made, but if the premiums are classified under ( ) 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. 3. (1) In the case of a category of linked contract being a single premium whole life assurance where the death benefit is a function of the age at death and has been calculated to be equivalent to the valuation mortality rate, so as to make the value of the death benefit liability independent of age, it is 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). (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. 4. In the case of those categories of contract which are shown in Forms 25 and 26 under a heading of "miscellaneous", statements may be prepared in the form set out in Forms 37 and 44 respectively, and, if this is done, no statement need be prepared in pursuance of paragraph 2 for those categories of contract. ) 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 Age (starting with the youngest) Sums assured Reversionary bonuses Annual office premiums Instructions for completion of Form 31 1. The information may be given for 5-year age groups. 2. The basis on which the age has been assessed shall be stated. Form 32 ENDOWMENT ASSURANCES Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Year of maturity (starting with the nearest) Sums assured Reversionary bonuses Annual office premiums Instruction for completion of Form 32 Form 33 DEFERRED ANNUITIES WITH GUARANTEED CASH OPTIONS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended 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 Total annuity per annum corresponding to total cash options in Column 2 Column 3 Instructions for completion of Form 33 3. The information may be given for 5-year groups of year of commencement of annuity for annuities due to commence more than 10 years after the valuation date. 5. Separate tables shall be given in respect of business with a return of premiums on death before payment of the annuity is due to commence and in respect of business with no such benefit provided that one table only need be given for both these categories if that table contains sufficient additional information to enable the actuarial value of the death benefit to be estimated. 6. When the date on which the annuity was due to commence has passed but the annuity has not commenced and the cash option has not been taken, the basis on which the cash option and annuity have been included shall be stated. Form 34 DEFERRED ANNUITIES WITHOUT GUARANTEED CASH OPTIONS Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Year in which payment of annuity is due to commence (starting with the nearest) 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 Instructions for completion of Form 34 1. The information may be given for 5-year groups of year of commencement of annuity for annuities due to commence more than 10 years after the valuation date. 3. Separate tables shall be given in respect of business with a return of premiums on death before payment of the annuity is due to commence and in respect of business with no such benefit, provided that one table only need be given for both these categories if that table contains sufficient additional information to enable the actuarial value of the death benefit to be estimated. 4. Where separate tables are not given for each age at which annuities are due to commence, the average age of commencement shall be stated, for each sex separately. 5. Where the date on which the annuity was due to commence has passed but the annuity has not commenced, the basis on which the annuity has been included (and the value of it, if shown) shall be stated. 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 Age (starting with the youngest) Amount in payment per annum Instructions for completion of Form 35 1. For ages under 60, the information may be given for 5-year age groups. 2. The basis on which the age has been assessed shall be stated. 3. Deferred annuities where the date on which the annuity was due to commence has passed but the annuity has not commenced, and any cash option has not been taken, shall be included in Forms 33 or 34 as appropriate. 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 Year in which the term ends (starting with the nearest) Amount in payment per annum Form 37 Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Type of insurance Amount of sums assured or annual amounts of annuity Amount of reversionary bonuses Amount of annual office premiums Amount of mathematical reserves Form 38 LINKED SINGLE PREMIUM ASSURANCES Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Age (starting with the youngest) Current sums assured Guaranteed minimum sums assured Number of units allocated at valuation date Instructions for completion of Form 38 1. The information may be given for 5-year age groups. 2. The basis on which the age has been assessed shall be stated. 3. A separate column 4 shall be provided for each different unit link to which a category of contract is linked. 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 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 Instructions for completion of Form 39 1. The information may be given for 5-year age groups. 2. The basis on which the age has been assessed shall be stated. 3. A separate column 4 shall be provided for each different unit link to which a category of contract is linked. 4. Where the annual amount invested in units in future is not constant this shall be stated and additional information given. 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 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 Instructions for completion of Form 40 2. A separate column 5 shall be provided for each different unit link to which a category of contract is linked. 3. Where the annual amount invested in units in future is not constant this shall be stated and additional information given. 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 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 Instructions for completion of Form 41 2. A separate column 5 shall be provided for each different unit link to which a category of contract is linked. 3. Where the annual amount invested in units in future is not constant, it shall be stated and additional information given. Form 42 LINKED DEFERRED ANNUITIES Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Year in which payment of annuity is due to commence (starting with the nearest) Number of units allocated at valuation date Instructions for completion of Form 42 1. The information may be given for 5-year groups of year of commencement of annuity for annuities due to commence more than 10 years after the valuation date. 2. A separate column 2 shall be provided for each different unit link to which a category of contract is linked. 3. Separate tables shall be given in respect of business with a return of premiums on death before payment of the annuity is due to commence and in respect of business with no such benefit, provided that one table only need be given for both these categories if that table contains sufficient additional information to enable the actuarial value of the death benefit to be estimated. Form 43 LINKED ANNUITIES IN PAYMENT Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Age (starting with the youngest) 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 Instructions for completion of Form 43 1. For ages under 60 the information may be given for 5-year age groups. 2. The basis on which the age has been assessed shall be stated. 3. Columns 2 and 4 shall be completed only for those categories of contract where the company bears the mortality risk. Columns 3 and 5 shall be completed for those categories of contract where the policyholders bear the mortality risks. 4. A separate form shall be provided for each different unit link to which a category of contract is linked. Form 44 Name of Undertaking: Global business/Irish business/Community business/Other Financial year ended Name of contract 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 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 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 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 — ) 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 ) 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. 2. (1) Where for the purpose of determining any supplementary amount in accordance with paragraph 1 the insurance undertaking cannot reasonably ascertain — ) the value of any asset of a relevant dependant, or ) 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 — (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 ) in any other case, any dependant of the insurance undertaking — (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 — ) 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, ) the value of such assets exceeds the permitted limit applicable to the dependant in relation to those assets, and ) 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 ( ) 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 — ) the insurance undertaking, ) the subject company, if it is an insurance undertaking, and ) 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 — ) 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 ) 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. 4. The modifications of these Regulations applicable (in addition to that specified in paragraph 3 (2)) with respect to the determination of the value of the assets of the subject company where it is not an insurance undertaking are as follows — ) 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); ) Article 38 (2) shall not apply; and ) Article 49 shall not apply. 5. In this Schedule, "subject company" means the dependant of the insurance undertaking the value of whose assets is being determined in accordance with Article 40(2) or(3) (as the case may be). SCHEDULE 7 ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT PART 1 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. 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. 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) (b) any one unincorporated body persons not being moneys due from the State or any public body. 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— 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) (b) any one unincorporated body of persons not being moneys due from the State or any public body. 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). 6. Debts due or other rights of the undertaking under any contract of reinsurance as described in Article 41(4). (a) any one company and any of its connected companies (not being a dependant of the undertaking), and (a) + (b) (b) any one of the associated banks (not being a dependant of the undertaking). (a) + (b) (a) any one company and any of its connected companies (not being a dependant of the undertaking), and (a) + (b) (b) any one of the associated banks (not being a dependant of the undertaking). (a) + (b) 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). 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. 13. Computer equipment. 14. Office machinery (other than computer equipment), furniture, motor vehicles and other equipment. 15. Units or other beneficial interest held under a recognised unit trust as described in Article 45. 16. Any loans to, or deposits with, any one approved financial institution. SCHEDULE 7 PART 2 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— (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 18. The maximum percentage of the life assurance business amount which can be represented by the aggregate of the assets shown in column 3, Part 1 of this Schedule may not exceed — Paragraphs 1 and 2 Paragraphs 7,8,9 and 10 Paragraphs 1,2,7,8,9,10 and 15* Paragraphs 13 and 14 Paragraphs 1 to 15 *In respect of that portion of the assets invested in equities/property. SCHEDULE 7 PART 4 19. In this Schedule, a company is a connected company of another company if it is— ) a subsidiary of that other company, or ) the holding company of that other company, or ) a subsidiary of the holding company of that other company. 20. In this Schedule, a debt is fully secured on land if the amount that would be realised on the sale of that land at a price equal to the most recent proper valuation of that land would (after deducting the reasonable expenses of sale) be sufficient to enable that debt (and any other obligation secured on that land which has priority to or ranks equally with that debt) to be discharged in full. GIVEN under my Official Seal, this 18th day of December, 1986. MICHAEL NOONAN, Minister for Industry and Commerce. EXPLANATORY NOTE