Section 32 Margins of solvency.C1

Every insurance company to which this Part of this Act applies—

shall maintain a margin of solvency of such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section.

Subject to subsection (3) below, every insurance company to which this Part of this Act applies whose head office is not in a member State shall maintain—

of such amounts as may be prescribed by or determined in accordance with regulations made for the purposes of this section.

Subsection (2) above shall not apply to an insurance company if its business in the United Kingdom is restricted to re-insurance F1or if it is a Swiss general insurance companyor if section 9(2) above applies to it; but an insurance company that has made a deposit in the United Kingdom in accordance with section 9(2)(b) above shall maintain—

of such amounts as may be prescribed by or determined in accordance with regulations made for the purposes of this section.

An insurance company that fails to comply with subsection (1), (2) or (3) above—

For the purposes of this Act—

In the case of an insurance company that carries on both long term and general business, subsections (1), (2) and (3) above shall have effect as if—

were requirements to maintain separate margins in respect of the two kinds of business (and accordingly as if the references in subsection (5) to assets and liabilities were references to assets and liabilities relating to the kind of business in question).

In applying subsection (5) above, the amount of the company’s liabilities shall be taken to be increased by the amount of any reserve maintained under section 34A below.