(1) Each insurance undertaking shall establish and maintain:
(a) technical reserves in respect of all underwriting liabilities assumed by it. The amount of such technical reserves shall be determined in accordance with the rules laid down in Council Directive 91/674/EEC [O.J. L374, 31.12.1991, page 7.];
(b) an adequate solvency margin and guarantee fund in respect of its entire business in accordance with Annex II to these Regulations.
(2) All Assets of an insurance undertaking shall be valued in accordance with Annex III to these Regulations for all purposes of the Insurance Acts and Regulations which require a determination of the value of assets to be made.
(3) Notwithstanding sub-articles (1) and (2) of this Article, if more than 90 per cent. of the gross premiums written in any accounting class of insurance business adopted for the purposes of the annual returns is reinsured, then the insurance undertaking will be required to maintain technical reserves representing a minimum of 1
…