Equalisation reserves: application of the regulatory rules
The equalisation reserves regulatory rules apply to insurance business in specified classes carried on by an insurer
- whose head office is in the UK, or
- whose insurance business in the UK is restricted to reinsurance, or
- whose head office is not in a European Economic Area (EEA) State.
The rules do not apply to
- ‘assessable mutuals’ - these are mutual associations where the provision of business is limited to members and whose rules call for deficiencies to be made up by members, for instance P&I clubs
- friendly societies
- Lloyd’s syndicates or members
- companies that conduct no insurance business in the UK or other EEA state even though UK incorporated
- UK branches of EEA companies, meaning companies resident in another Member State of the EEA which are regulated by that State, unless the business is pure reinsurance.