1. Each Member State shall require that an insurance undertaking whose head office is situated within its territory and which conducts reinsurance activities establishes, in respect of its entire business, a minimum guarantee fund in accordance with Article 40 of Directive 2005/68/EC, where one of the following conditions is met:
(a) the reinsurance premiums collected exceed 10 % of its total premium;
(b) the reinsurance premiums collected exceed EUR 50 000 000;
(c) the technical provisions resulting from its reinsurance acceptances exceed 10 % of its total technical provisions.
2. Each Member State may choose to apply to such insurance undertakings as are referred to in paragraph 1 of this Article and whose head office is situated within its territory the provisions of Article 34 of Directive 2005/68/EC in respect of their reinsurance acceptance activities, where one of the conditions laid down in the said paragraph 1 is met.