(1) Subject to subarticle (2) of this Article, an insurer holding an authorisation shall, in respect of a liability arising under a Community co-insurance operation, establish and maintain technical reserves calculated in accordance with the method applied to direct insurance business in the State.
(2) In the case of an insurer who is not the leading insurer, that part of the technical reserves consisting of the provision for outstanding claims arising under a Community co-insurance operation shall be not less than the amount of the provision determined by the leading insurer, due regard being had to the proportion of the risk covered by the first-mentioned insurer.
(3) The technical reserves shall be represented by matching assets. Pending the introduction of matching rules, this shall mean that where an underwriting liability is expressed in a particular currency, assets representing that liability shall either be expressed in that currency or be directly realisable in that curr