[833A Distributions by insurance companies authorised under the Solvency 2 Directive]
[833A Distributions by insurance companies authorised under the Solvency 2 Directive]
Companies Act 2006 | Legislation

[(1)     This section applies in relation to any authorised insurance company carrying on long-term business that is authorised in accordance with Article 14 of the Solvency 2 Directive.

(2)     For the purposes of section 830(2), the realised profit or loss of the company for the period in respect of which its relevant accounts (within the meaning of section 836) are prepared is taken to be the amount given by the formula in subsection (4) (with a positive figure taken to be a realised profit and a negative figure taken to be a realised loss).

(3)     But the company's profits available for distribution are limited to an amount that does not exceed its accumulated profits (whether realised or not), so far as not previously utilised by distribution or capitalisation, less its accumulated losses (whether realised or not), so far as not previously written off in a reduction or reorganisation of capital duly made.

(4)     The formula is A – L D,

where—

“A” is the total value of the company's assets;

“L” is the total value of the company's liabilities; and

“D” is the total value of the items within subsection (5) relating to the company;

and, in each case, the value is to be determined as at the date of the company's balance sheet that forms part of the accounts mentioned in subsection (2).

(5)     The items within this subsection are—