Regulation 5 Equalisation reserve: Part II

(1)

Subject to paragraph (2) below, a Part II company shall maintain an equalisation reserve in respect of Part II business in accordance with regulations 6 to 10 below.

(2)

Regulations 6 to 10 below shall not apply—

(a)

in respect of any Part II business where net premiums written in a financial year of a company in respect of all that business are—

(i)

less than 1,500,000 units of account; or

(ii)

less than 4 per cent. of net premiums written in that financial year in respect of all its general business and less than 2,500,000 units of account,

and the company has no equalisation reserve to be brought forward from the previous financial year; and

(b)

in respect of Part II business carried on outside the United Kingdom by a company whose head office is not in the United Kingdom.