The Friendly Societies (Insurance Business) Regulations 1994

Insurance statistics: EFTA States

55.—(1) Every society to which this Part of these Regulations applies which provides, in any financial year ending after the commencement date, long term insurance in an EFTA State through an establishment in the United Kingdom shall prepare, in respect of long term insurance so provided by it, a statement of gross premiums receivable by each of classes 1 to VI specified in Head A of Schedule 2 to the 1992 Act.

(2) The statement prepared under paragraph (1) above shall show separately—

(a) gross premiums receivable in respect of commitments for which the society requires authorisation in the EFTA State in which the commitments are situated in accordance with Article 12 of the second life Directive; and

(b) gross premiums receivable in respect of commitments for which the society does not require authorisation in that EFTA State in accordance with Article 14 of that Directive.

(3) Every society to which this Part of these Regulations applies which, in any financial year ending after the commencement date, provides general insurance in an EFTA State through an establishment in the United Kingdom shall prepare, in respect of general insurance so provided by it—

(a) a statement of gross premiums receivable by each group of classes; and

(b) where the gross premiums earned in respect of general insurance so provided by its exceed 2,500,000 ECU, an underwriting account showing, in respect of each group of classes, the items specified in paragraph (6) below.

(4) A separate statement and underwriting account shall be prepared under paragraph (1) and (3) above in respect of each EFTA State in which the society provides the insurance.

(5) If—

(a) in respect of general insurance provided by it in the EFTA State concerned through all its establishments (in the United Kingdom and elsewhere), the society earns in any financial year ending after the commencement date gross premiums in excess of 2,500,000 ECU; and

(b) the supervisory authorities of that EFTA State request the Commission to give a direction under this paragraph,

the Commission may by notice in writing direct the society in future to prepare, in respect of general insurance provided by it in that EFTA State through an establishment in the United Kingdom, an underwriting account showing, in respect of each group of classes, the items specified in paragraph (6) below.

(6) For the purposes of paragraphs (3) and (5) above the items which the underwriting account must show are as follows—

(a) the total gross premiums earned in the financial year;

(b) the total cost of gross claims incurred in the financial year;

(c) the total cost of gross commission attributable to premiums referred to in subparagraph (a) above; and

(d) the gross underwriting result.

(7) In paragraph (6) above—

(a) the gross premiums mentioned in subparagraph (a) are the gross premiums written in the financial year in addition to gross premiums unearned brought forward less gross premiums unearned carried forward;

(b) the gross claims mentioned in subparagraph (b) are the gross claims paid in the financial year in addition to gross claims outstanding carried forward less gross claims outstanding brought forward, and including directly attributable expenses;

(c) the gross commission mentioned in subparagraph (c) is the gross commission paid in the financial year plus gross commission brought forward less gross commission carried forward; and

(d) the gross underwriting result mentioned in subparagraph (d) is reached by deducting from the amount in subparagraph (a) the amounts referred to in subparagraphs (b) and (c).

(8) In respect of any financial year part of which falls before the commencement date, any statement or underwriting account required by paragraph (1), (3) or (5) above may be prepared solely in respect of long term or general insurance provided on or after that date.