Regulation 6 Other cases where relevant financing arrangements meet the reinsurance condition only: life assurance business and PHI business

(1)

This regulation applies if, in a section 83YC(3) period of account—

(a)

an insurance company carries on both life assurance business and PHI business, and

(b)

each relevant financing arrangement of the company in force in that period of account meets the reinsurance condition (and not the loan condition).

(2)

The part of the section 83YC(3) amount referable to life assurance business is—

\frac{L A B L + L F R A L}{L A B L + P H I L + T F R A L}

where—

“LFRAL” is the mean of the opening and closing life assurance liabilities reinsured under relevant financing arrangements relating to the non-profit fund for that period of account,
“TFRAL” is the mean of the total opening and closing liabilities reinsured under relevant financing arrangements relating to the non-profit fund for that period of account, and
“LABL” and “PHIL” each have the same meaning as in regulation 4(2).