Paragraph 1 Long term business

Subject to paragraph 7 below, the minimum guarantee fund for long term business shall be—

(a)

in the case of a pure reinsurer which—

(i)

is the wholly-owned subsidiary of an insurance company carrying on long term business, and

(ii)

carries on only such reinsurance business as is ceded to it by that company, 200,000 units of account,

(b)

in the case of a mutual, 600,000 units of account, and

(c)

in any other case, 800,000 units of account.