ARTICLE 19

SUBJECT TO ARTICLE 20 , THE MINIMUM SOLVENCY MARGIN SHALL BE DETERMINED AS SHOWN BELOW ACCORDING TO THE CLASSES OF INSURANCE UNDERWRITTEN : ( A ) FOR THE KINDS OF INSURANCE REFERRED TO IN ARTICLE 1 ( 1 ) ( A ) AND ( B ) OTHER THAN ASSURANCES LINKED TO INVESTMENT FUNDS AND FOR THE OPERATIONS REFERRED TO IN ARTICLE 1 ( 3 ) , IT MUST BE EQUAL TO THE SUM OF THE FOLLOWING TWO RESULTS : FOR TEMPORARY ASSURANCE ON DEATH OF A MAXIMUM TERM OF THREE YEARS THE ABOVE FRACTION SHALL BE 0,1 % ; FOR SUCH ASSURANCE OF A TERM OF MORE THAN THREE YEARS BUT NOT MORE THAN FIVE YEARS THE ABOVE FRACTION SHALL BE 0,15 % . ( B ) FOR THE SUPPLEMENTARY INSURANCE REFERRED TO IN ARTICLE 1 ( 1 ) ( C ) , IT SHALL BE EQUAL TO THE RESULT OF THE FOLLOWING CALCULATION : THE RESULT SHALL BE OBTAINED BY MULTIPLYING THE SUM SO CALCULATED BY THE RATIO EXISTING IN RESPECT OF THE LAST FINANCIAL YEAR BETWEEN THE AMOUNT OF CLAIMS REMAINING TO BE BORNE BY THE UNDERTAKING AFTER DEDUCTION OF TRANSFERS FOR REINSURANCE AND THE GROSS AMOUNT OF CLAIMS ; THIS RATIO MAY IN NO CASE BE LESS THAN 50 % . IN THE CASE OF THE ASSOCATION OF UNDERWRITERS KNOWN AS LLOYD'S , THE CALCULATION OF THE SOLVENCY MARGIN SHALL BE MADE ON THE BASIS OF NET PREMIUMS , WHICH SHALL BE MULTIPLIED BY FLAT-RATE PERCENTAGE FIXED ANNUALLY BY THE SUPERVISORY AUTHORITY OF THE HEAD-OFFICE MEMBER STATE . THIS FLAT-RATE PERCENTAGE MUST BE CALCULATED ON THE BASIS OF THE MOST RECENT STATISTICAL DATA ON COMMISSIONS PAID . THE DETAILS TOGETHER WITH THE RELEVANT CALCULATIONS SHALL BE SENT TO THE SUPERVISORY AUTHORITIES OF THE COUNTRIES IN WHOSE TERRITORY LLOYD'S IS ESTABLISHED . ( C ) FOR PERMANENT HEALTH INSURANCE NOT SUBJECT TO CANCELLATION REFERRED TO IN ARTICLE 1 ( 1 ) ( D ) , AND FOR CAPITAL REDEMPTION OPERATIONS REFERRED TO IN ARTICLE 1 ( 2 ) ( B ) , IT SHALL BE EQUAL TO A 4 % FRACTION OF THE MATHEMATICAL RESERVES CALCULATED IN COMPLIANCE WITH THE CONDITIONS SET OUT IN THE FIRST RESULT IN ( A ) OF THIS ARTICLE . ( D ) FOR TONTINES , REFERRED TO IN ARTICLE 1 ( 2 ) ( A ) , IT SHALL BE EQUAL TO 1 % OF THEIR ASSETS . ( E ) FOR ASSURANCES COVERED BY ARTICLE 1 ( 1 ) ( A ) AND ( B ) LINKED TO INVESTMENT FUNDS AND FOR THE OPERATIONS REFERRED TO IN ARTICLE 1 ( 2 ) ( C ) , ( D ) AND ( E ) IT SHALL BE EQUAL TO : FIRST RESULT : A 4 % FRACTION OF THE MATHEMATICAL RESERVES , RELATING TO DIRECT BUSINESS GROSS OF RE-INSURANCE CESSIONS AND TO RE-INSURANCE ACCEPTANCES SHALL BE MULTIPLIED BY THE RATIO , FOR THE LAST FINANCIAL YEAR , OF THE TOTAL MATHEMATICAL RESERVES NET OF RE-INSURANCE CESSIONS TO THE GROSS TOTAL MATHEMATICAL RESERVES AS SPECIFIED ABOVE ; THAT RATIO MAY IN NO CASE BE LESS THAN 85 % ; SECOND RESULT : FOR POLICIES ON WHICH THE CAPITAL AT RISK IS NOT A NEGATIVE FIGURE , A 0,3 % FRACTION OF SUCH CAPITAL UNDERWRITTEN BY THE UNDERTAKING SHALL BE MULTIPLIED BY THE RATIO , FOR THE LAST FINANCIAL YEAR , OF THE TOTAL CAPITAL AT RISK RETAINED AS THE UNDERTAKING'S LIABILITY AFTER RE-INSURANCE CESSIONS AND RETROCESSIONS TO THE TOTAL CAPITAL AT RISK GROSS OF RE-INSURANCE ; THAT RATIO MAY IN NO CASE BE LESS THAN 50 % . THE PREMIUMS OR CONTRIBUTIONS ( INCLUSIVE OF CHARGES ANCILLARY TO PREMIUMS OR CONTRIBUTIONS ) DUE IN RESPECT OF DIRECT BUSINESS IN THE LAST FINANCIAL YEAR IN RESPECT OF ALL FINANCIAL YEARS SHALL BE AGGREGATED ; TO THIS AGGREGATE THERE SHALL BE ADDED THE AMOUNT OF PREMIUMS ACCEPTED FOR ALL REINSURANCE IN THE LAST FINANCIAL YEAR ; FROM THIS SUM SHALL THEN BE DEDUCTED THE TOTAL AMOUNT OF PREMIUMS OR CONTRIBUTIONS CANCELLED IN THE LAST FINANCIAL YEAR AS WELL AS THE TOTAL AMOUNT OF TAXES AND LEVIES PERTAINING TO THE PREMIUMS OR CONTRIBUTIONS ENTERING INTO THE AGGREGATE . THE AMOUNT SO OBTAINED SHALL BE DIVIDED INTO TWO PORTIONS , THE FIRST EXTENDING UP TO 10 MILLION UNITS OF ACCOUNT AND THE SECOND COMPRISING THE EXCESS ; 18 % AND 16 % OF THESE PORTIONS RESPECTIVELY SHALL BE CALCULATED AND ADDED TOGETHER . A 4 % FRACTION OF THE MATHEMATICAL RESERVES , CALCULATED IN COMPLIANCE WITH THE CONDITIONS SET OUT IN THE FIRST RESULT IN ( A ) OF THIS ARTICLE IN SO FAR AS THE UNDERTAKING BEARS AN INVESTMENT RISK , AND A 1 % FRACTION OF THE RESERVES CALCULATED IN THE FASHION , IN SO FAR AS THE UNDERTAKING BEARS NO INVESTMENT RISK PROVIDED THAT THE TERM OF THE CONTRACT EXCEEDS FIVE YEARS AND THE ALLOCATION TO COVER MANAGEMENT EXPENSES SET OUT IN THE CONTRACT IS FIXED FOR A PERIOD EXCEEDING FIVE YEARS PLUS A 0,3 % FRACTION OF THE CAPITAL AT RISK CALCULATED IN COMPLIANCE WITH THE CONDITIONS SET OUT IN THE FIRST SUBPARAGRAPH OF THE SECOND RESULT OF ( A ) OF THIS ARTICLE IN SO FAR AS THE UNDERTAKING COVERS A DEATH RISK .

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Source: EUR-Lex (Cellar) · retrieved 2026-10-29 · Text as adopted (Official Journal); later amendments are not incorporated in this text.