Interpretation: Annex II
1. In this Part, a reference to a class of insurance business is a reference to a class of business relating to risks referred to in a class of point A in the Annex to the First Directive.
Required solvency margin for insurance undertaking
(1) An insurance undertaking whose head office is located within the State shall maintain an adequate available solvency margin in respect of the whole of its business, which is at all times at least equal to that required by this Part.
(2) The undertaking's available solvency margin must correspond to its assets, free of all foreseeable liabilities, less any intangible items.
(3) In determining the amount of the available solvency margin for the undertaking, the following must be included:
(a) the paid up share capital or, in the case of a mutual insurance undertaking, the effective initial fund, together with any members' accounts that comply with the requirements of subparagraph (4) of this paragraph;
(b) reserves (in
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