Paragraph 52 Long-term business provision

The long-term business provision must in principle be computed separately for each long-term contract, save that statistical or mathematical methods may be used where they may be expected to give approximately the same results as individual calculations.

A summary of the principal assumptions in making the provision under sub-paragraph (1) must be given in the notes to the accounts.

The computation must be made annually by a Fellow of the Institute or Faculty of Actuaries F1with due regard to generally accepted actuarial principles and on the basis of recognised actuarial methods F2...