PART 3Groups

CHAPTER 3Group Solvency

Related undertakings: calculation of group solvency18

1

This regulation applies where—

a

the PRA is the group supervisor of a group;

b

the group contains at least three insurance undertakings, reinsurance undertakings, insurance holding companies or mixed financial holding companies (“A”, “B” and “C”);

c

A and B are related undertakings;

d

A and C are related undertakings; and

e

either B or C has its head office in an EEA State other than the United Kingdom.

2

Except where paragraph (3) applies, the PRA must permit the group, in the calculation of group solvency, to take into account national laws which—

a

are adopted by that EEA State to implement the solvency capital requirement and the requirements relating to the own funds eligible to satisfy the solvency capital requirement; and

b

apply to B or C (as the case may be).

3

This paragraph applies where—

a

there is a significant change to the national laws referred to in paragraph (2); and

b

it is not in the interests of the group's policyholders to take into account the national laws referred to in paragraph (2).