Non-resident insurers: regulatory background: non-EEA insurers: FSA returns
The FSA Handbook (rule 9.2 of IPRU(INS)) requires a non-EEA insurer to file an FSA return as follows:
- a UK deposit insurer (GIM10090) must file a global return and an EEA branch return
- an EEA deposit insurer or a Swiss general insurer must file a UK branch return
- a pure reinsurer based in an EEA State must file a global return.Any other company (one whose head office is outside the EEA and whose only EEA business is in the UK) must file a global return and a UK branch return.
Each of the forms in the FSA return contains a narrative heading ‘Global business/UK branch business/EEA branch business’ and a heading ‘GL/UK/CM’. The appropriate item is identified by deleting the others.
There are particular requirements for Form 13 – a separate form is required for deposited assets, assets maintained in the UK and those maintained in the UK and other EEA States. These assets will be ones which are appropriated to the UK branch, even though not necessarily held in the UK. This format is required to demonstrate that the company has UK branch assets equal to the UK margin of solvency.
A note to Form 20 (revenue account for general business) must for each accounting class give separately for business accounted for on an accident year basis and on an underwriting year basis the following
- the total gross premiums written and the amounts attributable to UK and to overseas business
- the reinsurers’ amount in respect of each of the amounts.For this purpose, gross premiums written must be shown or included as ‘UK premiums’ if, in the case of direct or facultative reinsurance, the contract of insurance was effected in the United Kingdom or if, in the case of a reinsurance treaty, the cedant was an insurer with head office in the UK or was a member of Lloyd’s. ‘Overseas premiums’ are other premiums. Gross written premiums are those shown in the profit and loss account at general business technical account item I.1.(a). Net written premiums are after reinsurance premiums payable on reinsurance ceded.
The directors’ certificate on the return must certify that the requirements as to solvency margins and maintenance of assets have been observed.