1. In this Annex:

"assets" means: (a) in the case of non-linked contracts, designated assets as defined in Article 2 (16) of Annex V to these Regulations; and (b) in the case of linked contracts, linked assets as defined in Article 2 of these Regulations;

"liabilities" and "reserves" refer to provision by an undertaking to cover liabilities arising under or in connection with contracts for life assurance;

"property linked benefits" has the meaning assigned to it in Article 2 of these Regulations.

2.

(1) Reserves may, subject to sub-paragraph (2), be established and maintained after the deduction of reinsurance cessions, provided such reinsurance arrangements are acceptable to the Bank.