PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

Miscellaneous provisions relating to life assurance business

F1444ABBRetained assets

(1)

For the purposes of section 444AB the relevant amount in relation to assets that are retained assets F2is—

FVA-ABDP-RL13-RRLmath

where—

  • FVA is the fair value of the assets on the transfer date,

  • ABDP is the amount of the profits to be taken into account as profits under section 444ABD,

  • RL13 is the amount by which AL13 exceeds VE, and

  • RRL is the value of any relevant retained liabilities immediately after the transfer date.

But the relevant amount is nil if it would otherwise be below nil.

F3(1A)

For the purposes of subsection (1) above—

(a)

AL13 is any positive amount shown (or treated as shown) in line 13 of Form 14 in the periodical return for the last period of account of the transferor ending before the transfer date;

(b)

VE is the amount (if any) by which VL32 exceeds VTL where—

(i)

VL32 is the value of the assets shown (or treated as shown) in line 32 of Form 40 in the periodical return of the transferor covering (or treated as covering) the transfer date, and

(ii)

VTL means the amount of the F4mathematical reserves (as determined in accordance with section 1.2 of the Insurance Prudential Sourcebook) transferred by the insurance business transfer scheme; and

(c)

relevant retained liabilities are any liabilities of the company's long-term business which are owed by the company immediately after the transfer date and are shown (or treated as shown) in any of lines 17, 21 to 23 and 31 to 38 in Form 14 in a periodical return for the period of account ending (or treated as ending by section 444AA) immediately before the transfer date.

(2)

See section 444AA for the meaning of “the transfer date” in this section.