Equalisation reserves: classes other than credit business: summary of requirements
Take each business group
- calculate transfers in
- calculate transfers out - applying the maximum reserve cap.
- combine the reserves to form the aggregate equalisation reserve, and
- calculate and apply aggregate maximum reserve.
GIM7040 gives the percentages for calculating transfers in, transfers out and maximum reserve levels.
GIM7110 gives an example of an equalisation reserve for an insurer writing insurance falling into two business groups.