# The Insurance Companies Regulations 1994, Regulation 27: Matching: general requirement


(1) Where in the case of an insurance company to which Part II of the Act applies the company’s liabilities in any particular currency exceed 5 per cent. of its total liabilities, the company shall hold sufficient assets in that currency to cover at least 80 per cent. of the company’s liabilities in that currency.
(2) Where an insurance company carries on both long term and general business, the requirements of paragraph (1) above apply to the assets and liabilities of each kind of business separately.
(3) Where the contract of insurance expresses any liability in terms of a particular currency, that liability shall be regarded as a liability in that currency.
(4) For the purposes of this regulation—
“assets”, except in the case of assets of the kind referred to in regulation 45(2) below, means assets valued in accordance with Part VIII of these Regulations; and
“liabilities” means provision by an insurance company to cover liabilities arising under or in connection with contracts of insurance (not being liabilities relating to insurance business excluded by regulation 32 below).
(5) For the purposes of this regulation references to assets in a currency shall be construed as references to assets expressed in or capable of being realised (without exchange risk) in that currency; and an asset is capable of being realised (without exchange risk) in a currency if it is reasonably capable of being realised in that currency without risk that changes in exchange rates would reduce the cover of liabilities in that currency.
(6) The provisions of this regulation have effect subject to regulations 28 to 30 below.

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Source: https://www.legislation.gov.uk/uksi/1994/1516/regulation/27 (the official version)
Page: https://openlegislation.uk/insurance-companies-regulations-1994/regulation-27
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.