(1) Each insurance undertaking shall establish and maintain:
(a) technical reserves, including mathematical reserves, in respect of all underwriting liabilities assumed by it,
(b) an adequate solvency margin and guarantee fund in respect of its entire business in accordance with Annex II to these Regulations.
(2) Subject to the provisions of Annex IV to these Regulations relating to the determination of liabilities, the amount of liabilities of an insurance undertaking shall be determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance undertakings.
(3) In determining under sub-articles (1) and (2) of this Article the amount of liabilities of an insurance undertaking, all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital.
(4) Each insurance undertaking shall cover its technical reserves by equivalent assets valued in accordance wit
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