Paragraph 2

Subject to sub-paragraphs (2) and (4) below, such reserve shall at the end of each financial year receive 75 per cent. of any technical surplus arising in respect of credit insurance business, subject to a limit of 12 per cent. of net premiums written during that financial year until the reserve has reached 150 per cent. of the highest annual amount of net premiums written during the previous five financial years.

Any company which was required, pursuant to regulations 76 to 78 of, and Schedule 14 to, the 1994 Regulations, to maintain a reserve in respect of credit insurance business shall, at the end of the first financial year to which these Regulations apply, transfer the amount of such reserve brought forward from the previous financial year to the credit insurance equalisation reserve.