Textual Amendments
F1Sch. 19B inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(e), Sch. 12 para. 3
8(1)This Part of this Schedule applies in relation to a liability of an insurer while the value of the liability is reduced under a write-down order.
(2)Where the write-down order is varied, this Part of this Schedule applies as if references to the write-down order were to the order as varied.
9(1)In determining the value of the liability for the purposes of a relevant insolvency provision, no account is to be taken of the contingent or prospective value of the liability, or interest on the liability, arising from any expectation that the write-down order will be varied, further varied or cease to have effect (whether in relation to the liability or generally).
(2)The relevant insolvency provisions are—
(a)section 123 of the 1986 Act or Article 103 of the 1989 Order, or any statutory provision which applies that section or that Article;
(b)Article 11 of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency 2);
(c)PRA rules applicable to non-directive insurers, within the meaning given by the Rulebook made by the PRA under this Act (as that Rulebook has effect from time to time).
(3)The Treasury may by regulations amend sub-paragraph (2).
10(1)This paragraph applies where—
(a)the liability is a liability under a contract of insurance the insurer carries out as principal (“contract A”), and
(b)the insurer enters into a reinsurance contract under which contract A, or any liability under contract A, is reinsured (“contract B”).
(2)In determining the value of the liability for the purposes of contract B, no account is to be taken of the reduction in value of the liability under the write-down order.]