1. Member States shall ensure that the competent authorities have the power to require a financial recovery plan for those reinsurance undertakings where competent authorities consider that their obligations arising out of reinsurance contracts are threatened.
2. The financial recovery plan shall, as a minimum, include particulars or proof for the next three financial years concerning:
(a) estimates of management expenses, in particular current general expenses and commissions;
(b) a plan setting out detailed estimates of income and expenditure in respect of reinsurance acceptances and reinsurance cessions;
(c) a forecast balance sheet;
(d) estimates of the financial resources intended to cover underwriting liabilities and the required solvency margin;
(e) the overall retrocession policy.
3. Where the financial position of the reinsurance undertaking is deteriorating and the contractual obligations of the reinsurance undertaking are threatened, Member States shall ensure that the