Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to a non-directive friendly society.

1.2

In this Part, the following definitions shall apply:

defined percentage

means the percentage arrived at by taking (for all contracts of the same type as the contract in question for which an adjustment is made) the average of the percentages of the relevant capital sum under each such contract that represent the acquisition costs incurred which, after allowing for the effects of taxation, might reasonably be recovered from the premiums payable under the contract.

established surplus

means an excess of assets representing the whole or a particular part of the fund or funds maintained by the firm in respect of its long-term insurance business over the liabilities, or a particular part of the liabilities, of the firm attributable to that business as shown by an investigation to which IPRU(FSOC) 5.1 or 5.2 of the PRA Handbook as at 31 December 2015 applies pursuant to Non-Solvency II Firms – Transitional Measures 3.

exposure

means:

1. (1) (in relation to assets), an amount determined in accordance with Friendly Society – Asset Valuation 18 to 24;
2. (2) (in relation to a counterparty), an amount determined in accordance with Friendly Society – Asset Valuation 25 to 27.

general insurance business liabilities

means liabilities of the friendly society which are attributable to its general insurance business.

linked assets

means the long-term insurance business assets of the friendly society which are, for the time being, identified in the records of the friendly society as being assets by reference to the value of which property-linked benefits are to be determined.

valuation date

in relation to an actuarial investigation, means the date to which the investigation relates.

variable interest investments

means investments other than fixed interest securities.