1. Subject to Article 20, the required solvency margin shall be determined as laid down in paragraphs 2 to 7 according to the classes of assurance underwritten.
2. For the kinds of assurance referred to in Article 1(1)(a) and (b) other than assurances linked to investment funds and for the operations referred to in Article 1(3), the required solvency margin shall be equal to the sum of the following two results:
(a) first result:
a 4 % fraction of the mathematical provisions, relating to direct business and reinsurance acceptance gross of reinsurance cessions shall be multiplied by the ratio, for the last financial year, of the total mathematical provisions net of reinsurance cessions to the gross total mathematical provisions. That ratio may in no case be less than 85 %;
(b) second result:
for policies on which the capital at risk is not a negative figure, a 0,3 % fraction of such capital underwritten by the assurance undertaking shall be multiplied by the ratio, for the last fin