Regulation 55 Expenses

Provision shall be made for meeting the expenses likely to be incurred in future in fulfilling the existing contracts, taking account of the effect of taxation as appropriate, but credit may be taken to the extent appropriate for the fractions of future premiums left out of account pursuant to regulation 51(1) above.

The provision mentioned in paragraph (1) above shall have regard to, among other things, the society’s actual expenses in the last twelve months before the valuation date and the contingency that the society may cease to transact new business.