Paragraph 46 Long term business provision

The long term business provision shall in principle be computed separately for each long term contract, save that statistical or mathematical methods may be used where they may be expected to give approximately the same results as individual calculations.

A summary of the principal assumptions in making the provision under sub-paragraph (1) shall be given in the notes to the accounts.

The computation shall be made annually by a Fellow of the Institute or Faculty of Actuaries on the basis of recognised actuarial methods, with due regard to the actuarial principles laid down in F1Directive 2002/83/EC of the European Parliament and of the Council of 5th November 2002 concerning life assurance .