(1) Reserves may, subject to paragraph (2), be established and maintained after the deduction of reinsurance cessions, provided such reinsurance arrangements are acceptable to the Minister.
(2) If more than 75 per cent of the gross premiums written in respect of any one of the individual categories of contracts set out in paragraph (4) is reinsured, then the primary insurer shall establish and maintian reserves, equivalent to a minimum of 25 per cent of gross premiums or 25 per cent of gross reserves (whichever is the greater) in that class and shall hold assets, localised in the State, representing that amount accordingly.
(3) Where the reinsurance arrangements are not acceptable to the Minister he may require that, in respect of any one of the individual categories of contracts set out in paragraph (4), reserves be maintained before the deduction of reinsurance cessions.
(4) The individual categories of contacts referred to in paragraphs (2) and (3) are -
(i) life assurance cont