(1) As far as reinsurance is concerned, these Regulations do not apply to the activity of reinsurance conducted or fully guaranteed by the government of a Member State when that government is acting, for reasons of substantial public interest, in the capacity of reinsurer of last resort, including in circumstances where such a role is required by a situation in the market in which it is not feasible to obtain adequate commercial cover.

(2) These Regulations do not apply to reinsurance undertakings which by 10 December 2007 ceased to conduct new reinsurance contracts and exclusively administer their existing portfolio in order to terminate their activity.

(3) These Regulations do not apply to an undertaking which -

(a) has its head office in a third country,

(b) is lawfully carrying on reinsurance in that third country, and

(c) is carrying on reinsurance (but no other activity) in the State.