Method to be used in calculating adjusted solvency of insurers and reinsurers.
(1) Except as provided under subparagraph (2), the adjusted solvency of insurers and reinsurers to which Regulation 4(1) applies must be calculated according to the method specified in paragraph 17 of this Schedule.
(2) The Bank may also authorise or direct an insurer or reinsurer to use the method specified in paragraph 18 or 19 of this Schedule.
Proportional share of participating undertaking to be taken into account.
(1) In calculating the adjusted solvency of an insurer or reinsurer, the proportional share held by the participating undertaking in its related undertakings must be taken into account.
(2) If the related undertaking is a subsidiary undertaking and has a solvency deficit, the total solvency deficit of the subsidiary must be taken into account.
(3) However, if, in the opinion of the Bank, the responsibility of the parent undertaking that owns a share of the capital is limited strictly
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